Graphyte Secures Sumitomo Investment and NYK Credit Deal in Dual Announcement

Graphyte has announced two agreements that mark a significant step forward for durable carbon removal. Sumitomo Corporation has acquired an equity stake in Graphyte's Loblolly carbon removal project in Pine Bluff, Arkansas, while Japanese shipping giant NYK Group has signed an agreement to purchase carbon removal credits generated through Graphyte's Carbon Casting technology.

The back-to-back deals signal growing confidence from major Japanese industrial players in durable carbon removal as both a climate solution and an emerging infrastructure asset class.

A Graphyte storage site in Tennessee

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A New Model for Carbon Removal Project Financing

The Sumitomo investment stands out for how it's structured. Rather than investing at the corporate level, Sumitomo has taken an equity stake directly in the Loblolly facility, making this one of the first known examples of project-level financing for a durable carbon removal site.

The deal would increase Loblolly's removal capacity from 15,000 metric tons per year to 65,000 tons, with the expansion expected to be completed by the end of August. While specific financial terms weren't disclosed, Graphyte CEO Barclay Rogers said Sumitomo would receive a percentage of the additional revenue produced by the expansion and any future projects it helps bankroll. E&E NewsE&E News

Rogers was direct about why this deal matters beyond Graphyte itself. "You can't build capital-intensive factories with venture capital," he said. "So getting to project finance is a critical, critical step for the CDR industry as a whole, and particularly for Graphyte."

The joint venture is also expected to support the development of additional carbon removal projects down the line, with the deal potentially being the first of many joint ventures, according to Rogers. E&E News

About Graphyte's Carbon Casting Process

Graphyte converts agricultural and timber waste, including sawdust, bark, and rice hulls sourced from local Arkansas farms and mills, into dense compressed carbon blocks. Those blocks are wrapped in a waterproof barrier and stored underground in engineered chambers, where carbon is expected to remain sequestered for over 1,000 years. All credits are certified through the carbon registry Isometric.

NYK Adds Biomass Removal to Its Decarbonization Mix

For NYK, the Graphyte credit purchase is part of a broader effort to address residual emissions that can't be eliminated through operational improvements alone. The shipping sector is widely recognized as one of the hardest industries to decarbonize, relying on long-distance transport and energy-dense fuels with no easy near-term replacement.

NYK has set a target of retiring 100,000 tons of CO2 through CDR credits by 2030. The Graphyte agreement adds a biomass-based removal pathway to its growing portfolio of carbon removal credit purchases.

Building on Recent Momentum

The dual announcement follows Graphyte's 60,000-ton, 10-year carbon removal agreement with JPMorganChase, signed in April 2026. Together, these deals point to accelerating demand for Graphyte's credits across financial institutions and major industrial buyers alike, and suggest that project-level financing for durable carbon removal infrastructure may finally be finding its footing.