Reconciliation Energy Transition Inc. and Sumitomo Corporation Group sign Joint Development Agreement for RETI East Calgary Region CTS Hub Project

CALGARY, AB and NEW YORK, May 23, 2024 /PRNewswire/ -- 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.

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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.

This announcement is yet another example of how industry recognizes the opportunities in our province." - Brian Jean, Alberta Minister of Energy and Minerals

¹Carbon Capture and Storage; Process of reducing CO₂ emissions by capturing CO₂ from industrial processes or power plants and permanently storing it underground.
²Direct Air Capture; Direct removal of CO₂ from the ambient air using chemical or physical processes.
³Sustainable Aviation Fuel

About RETI

Established in 2019, RETI is a private development company focused on low carbon energy transition projects in partnership with Indigenous nations and industry. Our mission blends maximizing shareholder value with a commitment to Environmental, Social and Governance (ESG) principles. Our dedication to fostering meaningful Indigenous ownership aligns with Canada's commitment to reconciliation with Indigenous peoples and UNDRIP⁴ Principles, emphasizing our broader vision to economic reconciliation, benefitting all involved. For more information, visit www.reconciliationenergy.com

About Sumitomo Corporation

Sumitomo Corporation (TYO: 8053) is an integrated trading company with a strong global network comprising 129 offices in 66 countries and regions. The Sumitomo Corporation Group consists of approximately 900 companies and 80,000 employees on a consolidated basis. The Group's business activities are spread across the following nine groups: Steel, Automotive, Transportation & Construction Systems, Diverse Urban Development, Media & Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions and Energy Transformation Business. Sumitomo Corporation is committed to creating greater value for society under the corporate message of "Enriching lives and the world," based on Sumitomo's business philosophy passed down for over 400 years. For more information, please visit the Sumitomo Corporation home page at the following link www.sumitomocorp.com

Sumitomo Corporation's CCUS Initiatives

Sumitomo Corporation has highlighted mitigation of climate change as one of its key areas of focus whilst also committing to being carbon neutral by 2050. Sumitomo Corporation recognizes Carbon Capture Utilization and Storage, as a key technology to combat climate change, and, in January 2023, established a dedicated global CCUS team, within its Energy Innovation Initiative Strategic Business Unit, to focus on this business area. The involvement in the CTS Hub will allow Sumitomo Corporation to further develop its CCUS business footprint in North America. Additionally, the experience gained from these scopes will provide a strong basis to enable the global expansion of Sumitomo Corporation's CCUS business activities.

⁴United Nations Declaration on the Rights of Indigenous Peoples

SOURCE Sumitomo Corporation of Americas