Commencement of First Phase Operations for a Carbon Capture and Storage (CCS) Project in Canada

Bison Low Carbon Ventures Inc. (hereinafter, “Bison”), in which Marubeni Corporation (hereinafter, “Marubeni”) holds an equity stake, has commenced first phase operations (hereinafter, the “Operations”) under the Meadowbrook Carbon Storage Hub Project (hereinafter, the “Project”) in the province of Alberta, Canada. This marks the first case of a Carbon Capture and Storage (CCS) project involving a Japanese company in which CO2 is collected from a third-party company incurring injection fees for underground storage.

Carbon dioxide storage facility

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On the path to achieving carbon neutrality by 2050, CCS is considered an essential decarbonization technology for industries where reducing CO2 emissions is challenging under current operational processes. According to the Stated Policies Scenario in the World Energy Outlook 2025 (published by the International Energy Agency), the volume of CO2 captured globally is projected to expand significantly: from 43 million tons in 2024, to 160 million in 2035, and 300 million in 2050.

Alberta, where the Project is situated, benefits from abundant oil and natural gas resources, as well as a strong industrial cluster, but consequently struggles with the issue of CO2 emissions. In addition, owing to advantages such as suitable geology and a well-developed regulatory framework, the province is drawing attention as one of the world’s leading CCS jurisdictions. In 2022, a bid process was held for exploration permits covering 25 tenures to assess their suitability as CCS hubs. Bison acquired two of these tenures, of which one is the location of the Project. The Operations involve capturing CO2 at Deep Sky Alpha (a DAC* plant in Alberta run by Deep Sky) and transporting it to the Bison injection well and facility for underground storage, marking the first among the 25 Alberta CCS Hub tenures to achieve full regulatory approval and commence CO2 injection operations.

The Operations are a key milestone in demonstrating the practical feasibility of CO2 injection and are expected to enable Bison to offer proven storage options to CO2 emitters, as well as to support decision making for investment in related decarbonization projects.

Through the Operations, Marubeni and Bison will accelerate discussions with CO2 emitters with the aim of achieving commercial-scale operation of the Project. Looking ahead, the companies will target operating a business capable of storing 3 million tons of CO2 per year from multiple emission sources, focusing on nearby industries such as Alberta’s Industrial Heartland, thereby contributing to carbon neutrality in hard-to-abate industrial sectors.

• The process of capturing CO2 and storing it underground or via other storage methods.
  
• The first DAC project with underground storage in North America.
  
• Direct Air Capture: A technology that captures CO2 directly from the atmosphere.