Reconciliation Energy Transition Inc. and Sumitomo Corporation Group sign Joint Development Agreement for RETI East Calgary Region CTS Hub Project
Reconciliation Energy Transition and Sumitomo Group have signed a Joint Development Agreement for the RETI East Calgary Region Carbon Transportation & Sequestration Hub (CTS Hub). Sumitomo, through its subsidiary Ammolite Carbon Sequestration, will acquire significant equity in the project. The CTS Hub aims to begin CCS operations by FY2026, with a capacity to store up to 10 million tonnes of CO2 annually. The project includes compression capacity, a CO2 pipeline, and injection wells, providing a CCS-as-a-service solution for various energy facilities. The partnership also explores further projects like the Calgary Region SAF Facility and a Direct Air Capture facility.
- Sumitomo Group acquires significant equity in the CTS Hub.
- CTS Hub project aims to start CCS operations by FY2026.
- Potential CO2 storage capacity up to 10 million tonnes annually.
- Project will provide CCS-as-a-service solutions to various energy facilities.
- Strengthens long-term partnership between RETI and Sumitomo.
- Exploration of additional projects including SAF and DAC facilities.
- Supports Canada's Net Zero goals by 2050.
- Creates Indigenous equity ownership opportunities.
- Partnership boosts climate action and community development.
- Strengthens foreign investment in Alberta's economy.
- Project success contingent on progressing the FEED study.
- Potential financial risks involved in large-scale CCS projects.
- Delay risks in commencing operations by FY2026.
- Dependence on existing regulations and incentives for CCS.
Building upon the Exclusivity Agreement in October 2023, the parties have successfully finalized terms for Sumitomo Corporation Group to acquire a significant equity interest in the CTS Hub. The CTS Hub project intends to progress the FEED study as soon as possible, targeting first CCS1 operations in FY2026.
The CTS Hub is expected to involve construction of compression capacity, a CO2 pipeline network, and injection and monitoring wells to support permanent CCS in deep saline aquifers located east of
The open-access hub will provide a CCS-as-a-service solution for both existing emitters, seeking to reduce emissions, and newly proposed energy transition facilities, providing solutions that will contribute towards realizing a Net Zero Canada by 2050, including, but not limited to:
- Power plants needing to comply with the Clean Energy Regulation
- Clean hydrogen production facilities
- Biofuel production facilities
- Direct air capture (DAC)2 facilities
- Other industrial emitters
RETI and Sumitomo Corporation Group jointly envisage that, the CTS Hub project will be the start of a long-term partnership, with several other projects between RETI and Sumitomo Corporation Group currently being studied, including:
- The Calgary Region SAF3 Facility – RETI led project.
- DAC Facility – Sumitomo Corporation Group led project.
"Today's partnership with Sumitomo Corporation Group signifies a major step towards a sustainable, low-carbon future. By developing the RETI East Calgary Region CTS Hub project, we're not only reducing carbon emissions but also creating meaningful Indigenous equity ownership opportunities for local Indigenous peoples. This collaboration reflects our steadfast commitment to driving positive change and inclusive growth in the energy transition space." - Stephen Mason, Chairman & CEO of RETI.
"Our collaboration with RETI on the East Calgary Region CTS Hub is a direct move to increase tangible climate action and community development. This project not only accelerates our journey towards carbon neutrality but also establishes a blueprint for industrial collaboration in CCS. By leveraging our combined expertise and resources, we're setting a concrete path for significant emission reductions and supporting the transition to a cleaner energy landscape in
"We are truly thrilled to participate in one of the most highly regarded carbon capture projects under development in
As reported in November 2023, Sumitomo Corporation Group and Invest Alberta signed an MOU to support Sumitomo Corporation Group's development of clean energy initiatives throughout
"As Alberta continues to lead
"
This announcement is yet another example of how industry recognizes the opportunities in our province." - Brian Jean,
1 Carbon Capture and Storage; Process of reducing CO2 emissions by capturing CO2 from industrial processes or power plants and permanently storing it underground.
2 Direct Air Capture; Direct removal of CO2 from the ambient air using chemical or physical processes.
3 Sustainable Aviation Fuel
About RETI
Established in 2019, RETI is a private development company focused on low carbon energy transition projects in partnership with Indigenous nations and industry. Our mission blends maximizing shareholder value with a commitment to Environmental, Social and Governance (ESG) principles. Our dedication to fostering meaningful Indigenous ownership aligns with
About Sumitomo Corporation
Sumitomo Corporation (TYO: 8053) is an integrated trading company with a strong global network comprising 129 offices in 66 countries and regions. The Sumitomo Corporation Group consists of approximately 900 companies and 80,000 employees on a consolidated basis. The Group's business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of "Enriching lives and the world," based on Sumitomo's business philosophy passed down for over 400 years. For more information, please visit the Sumitomo Corporation home page at the following link www.sumitomocorp.com.
Sumitomo Corporation's CCUS Initiatives
Sumitomo Corporation has highlighted mitigation of climate change as one of its key areas of focus whilst also committing to being carbon neutral by 2050. Sumitomo Corporation recognizes Carbon Capture Utilization and Storage, as a key technology to combat climate change, and, in January 2023, established a dedicated global CCUS team, within its Energy Innovation Initiative Strategic Business Unit, to focus on this business area. The involvement in the CTS Hub will allow Sumitomo Corporation to further develop its CCUS business footprint in
4 United Nations Declaration on the Rights of Indigenous Peoples
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SOURCE Sumitomo Corporation of Americas
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