Microorganisms, Waste and Climate Impact: How Fermenstation Is Advancing Circular Economy Solutions

As climate pressures intensify globally, the need for scalable circular economy solutions is becoming increasingly urgent. At SusHi Tech Tokyo 2026, this conversation is expected to take centre stage, with startups like Fermenstation offering tangible pathways forward.

Founded by Lina Sakai Watanabe, the company is using fermentation and biotechnology to convert waste into functional, sustainable ingredients. In an exclusive interaction with CarbonWire ahead of the event, Watanabe outlined how her company is using fermentation and biotechnology to convert waste into sustainable, high-value ingredients.

Turning Waste into Climate Solutions

Fermenstation’s approach goes beyond traditional recycling. By applying microbial processes, the company transforms low-value biomass into high-performance ingredients that can replace resource-intensive or petrochemical-based alternatives.

“Using microorganisms not only reduces waste but creates new value with additional functionality,” Watanabe explained. This includes enhancing flavour, improving nutritional properties and enabling healthier alternatives in food and consumer products.

The climate benefits of this model are multi-dimensional:

Reduction of waste that would otherwise generate methane

Replacement of energy-intensive synthetic ingredients

Lower dependence on fossil-based materials

Improved resource efficiency across supply chains

Fermenstation is also working with academic institutions on lifecycle assessments to quantify its environmental impact. “Our technology can help reduce emissions while also creating alternatives to conventional products,” she said.

Scaling Circular Economy Solutions

Despite the promise, scaling remains a challenge. Cost competitiveness with synthetic alternatives and access to capital are key hurdles, particularly in Japan’s startup ecosystem.

However, Watanabe notes that demand for clean-label, sustainable products is rising globally, particularly in markets like the United States. The company’s strategy is to position itself as a B2B provider of sustainable ingredients, targeting industries such as food, beverages and cosmetics.

Platforms like SusHi Tech Tokyo play a critical role in advancing these solutions. By bringing together startups, corporates and policymakers, they create opportunities to accelerate adoption and collaboration.

“Circular economy technologies are essential for the future, not just for sustainability, but for how we continue to live and produce,” Watanabe said.

As global conversations shift from climate commitments to implementation, startups like Fermenstation highlight how biotechnology can become a core driver of the transition.