Reconciliation & Sumitomo Sign Development Agreement for RETI East Calgary Region

Source: 5/23/2024, Location: North America

Reconciliation Energy Transition Inc. ("RETI"), and Sumitomo Corporation, through its subsidiary Ammolite Carbon Sequestration (Collectively "Sumitomo Corporation Group"), have announced today that they have entered into a Joint Development Agreement for the RETI East Calgary Region Carbon Transportation & Sequestration Hub project ("CTS Hub") east of Calgary, Alberta. The RETI East Calgary Region Transportation & Sequestration Hub LP, a Limited Partnership established for the purpose of conducting project related activities, is also a signee to the agreement.

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 Calgary, with a potential to store up to 10 million tonnes of CO2 per annum.

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 Alberta and Canada." - Shinichi "Sandro" Hasegawa, Director of Ammolite Carbon Sequestration Limited and General Manager of Energy Innovation Initiative Americas at Sumitomo Corporation of Americas.

"We are truly thrilled to participate in one of the most highly regarded carbon capture projects under development in Alberta, a province renowned for its world-class CCS regulations and incentives. It is also exciting for Sumitomo Corporation Group to partner on this project with RETI. Together, we will endeavor to commence commercial operations as soon as possible and I firmly believe that this project will establish a robust foundation for expanding our partnership and significantly contributing to the decarbonization effort in the Calgary region. This includes exploring opportunities such as the joint development of SAF and DAC facilities, which are currently under assessment."- Seiji Kitajima, Head of Energy Innovation Initiative SBU at Sumitomo Corporation.

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 Alberta. As part of this relationship, Invest Alberta has been working with Sumitomo Corporation Group to identify well-aligned strategic partners, leading to the initial introduction of Sumitomo Corporation Group to RETI. Invest Alberta considers this announcement a major landmark for foreign investment into the Alberta economy.

"As Alberta continues to lead Canada's energy transition efforts, the agreement with RETI shows the scale of opportunities available within Alberta for economic success through partnerships and a commitment to reducing emissions. Strengthening the relationship between Japan and Alberta is a vital step toward achieving energy diversification and sustainability in both regions. We look forward to continuing our work with Sumitomo Corporation Group and RETI to create more high impact, net-zero solutions and to create new jobs." – Rick Christiaanse, Invest Alberta CEO.

"Alberta is a world leader in developing carbon capture, utilization and storage to help meet growing demand. The Western Canadian Sedimentary Basin contains significant pore space to support the sector. Our technical workforce is second to none.

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