FLORENTAISE: The Group forms new partnerships and reinforces its regional footprint in China, in favour of the ecological transition

The Group forms new partnerships and reinforces its regional footprint in China, in favour of the ecological transition

• Creation of two joint ventures with Chinese players for the recovery of local agricultural waste and the production of biochar

• Signature of an exclusive agreement to the benefit of Florentaise for the use and distribution of the biochar produced

• Letters of intent signed today by the Jiaxing district for the production of 84,000 tonnes of biochar a year, equivalent to 190,000 tonnes of carbon credit

Saint-Mars-du-Désert, 13 May 2024 – 5.45 pm: Florentaise (FR001400GO75, ALFLO), a pioneer in low-carbon potting soils, today announced the signing of multi-stakeholder agreements between Florentaise, its parent company Floreasy and Chinese industrial, agrifood and public players on the production of biochar and its exclusive use and distribution by Florentaise as part of its range of organic soils and fertilisers.

These agreements strengthen the ties established by the Group since 2017 with the Chinese economic and agrifood world. They reinforce the Group’s regional offices, ensure the long-term future of its business in a high-potential market, and step up the Group’s ecological commitment in these regions. These projects mark an important step forward in Florentaise’s development strategy in Asia, in support of China and its target on carbon neutrality by 2060.

Creation of Greenchar HK for the manufacture of pyrogasification equipment

The creation of Greenchar HK is an alliance of French and Chinese know-how for the distribution in China of the latest patented technologies in the treatment and recovery of agricultural waste. The new entity is owned 73.5% by Floreasy, partnered by KYLIN, an exclusive distributor of HAIQI, a manufacturer of pyrogasification equipment for biochar production and a 26.5% shareholder. Greenchar HK will also draw on the expertise of GazoTech, a French company that develops pyrogasification technologies for the production of bio-energies and biochar from biomass, and in which Floreasy holds a minority stake.

Creation of Futan for the recovery of waste from Chinese agriculture

Greenchar HK has signed an initial contract for the supply of pyrogasification equipment with Futan, a newly created Chinese joint venture that recovers waste from Chinese agriculture. Owned 49% by Greenchar HK, 31% by Chinese agrifood group Wu Fang Zhai, and 20% by the Jiaxing district, Futan will benefit from the exclusive operation of Greenchar HK’s equipment and the distribution of production in China. The collaborative venture aims to reduce the burial of agricultural waste, mainly from rice, wheat and maize crops, by converting it into renewable energy and biochar. Once processed, this waste will contribute to improving soil fertility while generating significant carbon credits.

The ambitious Futan project includes the construction of an initial pyrogasification facility in Jiaxing, set for commissioning in October 2024. Covered financially by contractual commitments from the Jiaxing district, the investment will generate 2 megawatt hours of green electricity using 38,000 tonnes of local agricultural waste annually. It will produce around 8,400 tonnes of biochar and 19,000 tonnes of carbon credits per year. The new alliance has enormous potential, since the annual tonnage of agricultural waste buried in China is estimated at several hundred million tonnes.

Production of biochar and generation of carbon credits, new powerful growth drivers for Florentaise

Together with these signatures binding on Floreasy, the parent company of Florentaise, a structuring agreement has been signed between Futan and Florentaise. Florentaise, along with its Chinese subsidiary Fulan, will have exclusive rights to use and distribute the biochar produced, thereby securing its supplies at competitive prices. The annual 8,400 tonnes of green coal will be incorporated into a new range of soils for young rice plants and used as a new raw material for Florentaise potting soils and organic fertilizers.

The Jiaxing government has already committed via a letter of intent to purchasing the power generation of nine additional facilities in the Jiaxing district alone by 2029, for a total of 20 MWh a year. The binding agreement was signed today in Paris in the presence of a representative of the Province of Zhejiang. The substantial order will contribute to the financing of all these facilities for the production of 84,000 tonnes of biochar and up to 190,000 tonnes of carbon credits annually. The certified carbon credits* will be sold exclusively in Europe and the United States by Florentaise for estimated annual revenue of more than €20 million.

*Approved by Puro-Earth, in particular for its facilities in northern Europe, HAIQI benefits from certified carbon credits per tonne of biochar based on a traditional 3-scope calculation. This certification is mandatory for reselling CO2 credits to international companies. Find out more: https://puro.earth/  

About Florentaise (https://www.florentaise.com/fr)

An ISE and mainly a family-owned group, Florentaise is a pioneer in the production of low-carbon potting soils. Founded in 1973 and with a 245-strong workforce, the Group boasts a catalogue of over 600 product references produced by its own brands and distributor brands and available from major retailers including Truffaut, Botanic, Aldi, LIDL and Intermarché. In France, Florentaise sells nearly one in every five bags of potting soil to the mass consumer segment and covers 12% of the professional market (horticulturists, landscapers and nursery specialists). Florentaise is the leading producer in France of potting soils and innovative eco-ingredients, and has big ambitions for international expansion. Its patented Hortifibre® and Turbofibre® solutions emit 20 to 50 times less CO2 than peat with equivalent agronomic performance. Operating internationally in six countries including China, the Group aims to exceed €120 million in consolidated revenue by 2027 with an operating margin of around 20% (vs. 4.9% at 30 June 2022).