Sumitomo Makes an Equity Investment in the East Calgary Carbon Transportation & Sequestration Project

Sumitomo Corporation of Americas, a subsidiary of Sumitomo Corporation, has made a substantial equity investment in the East Calgary Carbon Transportation & Sequestration Project (CTS Hub), a forthcoming CO2 transportation and sequestration initiative. This endeavor aligns with the collaborative efforts of Reconciliation Energy Transition and Sumitomo, who recently formalized an agreement granting Sumitomo the opportunity to acquire a stake in the project. The CTS Hub project aims to advance carbon capture, utilization, and storage (CCUS) technology as a crucial component of decarbonization strategies.

The CTS Hub's development will encompass the construction of compression facilities, a comprehensive CO2 pipeline network, and the establishment of injection and monitoring wells. These elements are intended to facilitate the secure and permanent sequestration of CO2 in deep saline aquifers situated to the east of Calgary. In its initial phase, the project anticipates the capacity to store up to three million tonnes of CO2 annually.

Stephen Mason, Chairman and CEO of Reconciliation Energy Transition, expressed satisfaction in welcoming Sumitomo, a distinguished trading and business investment company, as a partner in the project. He emphasized the significance of this collaboration, which is firmly committed to indigenous ownership, as a pivotal step toward realizing the CTS project's objectives.

This project aligns with Canada's Carbon Management Strategy, which outlines a vision for carbon management technologies to facilitate the achievement of the country's climate goals. This vision is underpinned by the development of a multibillion-dollar carbon management sector. Recognizing the urgency of addressing climate change, organizations like the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA) assert that carbon management technologies are indispensable for achieving net-zero emissions. However, their deployment must be rapid and substantial, scaling up by nearly 200 times by 2050 to meet global climate objectives.

According to the article by Procurement Resource, Sumitomo Corporation of Americas has made a significant equity investment in the East Calgary Carbon Transportation & Sequestration Project (CTS Hub), a key carbon capture and storage initiative. Partnering with Reconciliation Energy Transition, this project aims to advance carbon capture, utilization, and storage (CCUS) technology. It involves constructing infrastructure for secure CO2 sequestration in deep saline aquifers near Calgary, aligning with Canada's Carbon Management Strategy and global climate goals. CCUS is recognized as essential by organizations like the IPCC and IEA for achieving net-zero emissions.