Joint Development Agreement Signed for CTS Hub Project in Calgary

Reconciliation Energy Transition Inc. (“RETI”), and Sumitomo Corporation, through its subsidiary Ammolite Carbon Sequestration (Collectively “Sumitomo Corporation Group”), have announced 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 to conduct project-related activities, is also a signee to the agreement.

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 the 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 the potential to store up to 10 million tons of CO₂per 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,” said Stephen Mason, chairman and CEO of RETI. “This collaboration reflects our steadfast commitment to driving positive change and inclusive growth in the energy transition space.”

“Our collaboration with RETI on the East Calgary Region CTS Hub is a direct move to increase tangible climate action and community development,” said Shinichi Hasegawa, director of Ammolite Carbon Sequestration Limited and general manager of energy innovation initiative at Sumitomo Corporation of America. “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.”

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.

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