Sumitomo, Graphyte make JV to bolster biomass carbon removal credits
The Joint Venture will initially focus on the generation and sale of CDR credits centered on the “Loblolly,” a CDR credit generation project operated by Graphyte in Arkansas, USA, which utilizes rice hulls.
Japan’s Sumitomo Corporation has partnered with Graphyte, Inc., a U.S.-based startup in the decarbonization sector, to establish a joint venture company in the United States to develop a Carbon Dioxide Removal (CDR) business.
Sumitomo Corporation said that it will hold a 49% equity stake in the Joint Venture, while Graphyte will hold the remaining 51% stake. Graphyte operates a business that generates and sells CDR credits through Biomass Carbon Removal & Storage (BiCRS).
Through the Joint Venture, Sumitomo Corporation and Graphyte will jointly develop and promote the CDR credit business.
As companies accelerate initiatives to achieve net-zero targets, demand for high-quality, highly reliable CDR credits is growing, while supply remains limited. Against this backdrop, Sumitomo Corporation has decided to collaborate with Graphyte, which possesses both technological advantages and commercial track records, in order to establish a business platform in the rapidly growing CDR sector.
Graphyte processes, compresses, and seals biomass residues—which would otherwise become a source of CO2 emissions—and stores them underground to achieve long-term carbon sequestration and generate CDR credits. This technology, known as “Carbon Casting,” utilizes a proven process to remove CO2.
Under this initiative, the Joint Venture will initially focus on the generation and sale of CDR credits centered on the “Loblolly,” a CDR credit generation project operated by Graphyte in Arkansas, USA, which utilizes rice hulls. The “Loblolly” has been operating for over two years, and is being expanded to remove 50,000 metric tons of carbon dioxide per year. The “Carbon Casting” process is modular, so that the “Loblolly” and other projects developed through the Joint Venture can be scaled to meet commercial demand.
In addition to enabling low-cost and high-quality CDR, this business is expected to achieve early monetization, as the technology has already been commercialized in the USA.
Going forward, the Joint Venture will accelerate the development and expansion of its business portfolio through participation in multiple projects across North America.
Graphyte is backed by Breakthrough Energy Ventures, a climate and clean energy investment fund founded by Bill Gates in 2015. Breakthrough Energy Ventures is Graphyte’s largest shareholder.
