Sumitomo Corporation takes 49% stake in Graphyte-led US JV for CDR credits
- Sumitomo Corporation will hold 49% and Graphyte 51% in a US joint venture to develop and sell CDR credits via Biomass Carbon Removal & Storage (BiCRS).
- Graphyte's 'Carbon Casting' compresses and seals biomass residues for underground storage, claiming sequestration durability beyond 1,000 years and modular scalability.
- The Loblolly project in Arkansas uses rice hulls, has operated for over two years, and is being expanded to remove 50,000 metric tons of CO2 per year.
- The JV plans early commercialisation in the US, broader North American deployment, and sales to corporate buyers including Japanese firms such as Nippon Yusen Kabushiki Kaisha.
Deal structure
Sumitomo Corporation agreed with Graphyte to establish a joint venture in the United States to generate and sell carbon dioxide removal (CDR) credits. Sumitomo will hold a 49% equity stake and Graphyte 51%.
Technology and backing
Graphyte operates a Biomass Carbon Removal & Storage (BiCRS) business using a process called "Carbon Casting," which processes, compresses and seals biomass residues for underground storage. The company cites long-term sequestration durability (over 1,000 years), cost competitiveness and modular scalability. Graphyte is backed by Breakthrough Energy Ventures, founded in 2015, which is its largest shareholder.
Initial project and scale-up
The joint venture will initially focus on the Loblolly project in Arkansas, which uses rice hulls, has been operating for more than two years and is being expanded to remove 50,000 metric tons of CO2 per year. The modular nature of Carbon Casting is intended to enable scaling of this and other projects to meet commercial demand.
Market and commercial plans
The partners expect early monetisation given existing commercialisation in the US, and plan to accelerate development across North America. The JV aims to supply high-quality CDR credits to corporate buyers and capture new demand from Japanese companies, with plans to supply customers including Nippon Yusen Kabushiki Kaisha.
Source: Sumitomo
