Tokyo: Japanese trading company Sumitomo Corporation has partnered with US climate technology firm Graphyte to establish a new venture focused on scaling bioenergy-based carbon removal credits, marking a significant step in the growing market for long-term carbon dioxide removal solutions.
Under the agreement, Sumitomo will acquire a 49 per cent stake in the joint venture, which will develop and market carbon dioxide removal (CDR) credits generated through biomass carbon removal and storage projects.
Graphyte produces CDR credits using a proprietary process known as Carbon Casting. The technology converts biomass residues that would otherwise decompose and release carbon dioxide into compressed and sealed blocks that are stored underground, enabling long-term carbon sequestration for more than 1,000 years.
The US-based company is backed by Breakthrough Energy Ventures, the climate investment fund founded by Bill Gates.
The joint venture’s initial focus will be the Loblolly project in Arkansas, where rice hulls are used as feedstock for carbon removal. The facility is currently being expanded and is expected to remove up to 50,000 metric tonnes of carbon dioxide annually.
According to the companies, the modular design of the Carbon Casting technology allows projects to be replicated and expanded across multiple locations in North America to meet growing demand for carbon removal services.
Sumitomo said the partnership offers opportunities for early commercialisation because the technology has already demonstrated commercial viability in the United States.
The company also plans to supply the carbon removal credits generated through the venture to corporate customers seeking to reduce their carbon footprint, including Japanese shipping company NYK Line.
The partnership reflects increasing global interest in bioenergy and biomass-based carbon removal technologies as industries seek reliable pathways to achieve long-term decarbonisation goals while addressing residual emissions that are difficult to eliminate through conventional measures.
