Jun. 04, 2026
Sumitomo Corporation

Sumitomo Corporation to Participate in CDR Project Through Joint Venture with Graphyte

Sumitomo Corporation (“Sumitomo Corporation”; Head Office: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Shingo Ueno) has agreed with Graphyte, Inc. (“Graphyte”), a U.S.-based startup in the decarbonization sector, to establish a joint venture company in the United States (the “Joint Venture”) to develop a Carbon Dioxide Removal (CDR) business. Sumitomo Corporation will hold a 49% equity stake in the Joint Venture, while Graphyte will hold the remaining 51% stake. Graphyte operates a business that generates and sells CDR credits (*) through Biomass Carbon Removal & Storage (BiCRS). Through the Joint Venture, Sumitomo Corporation and Graphyte will jointly develop and promote the CDR credit business.

Growing CDR Credit Market and Background of the Collaboration with Graphyte

Amid the global trend toward decarbonization, interest in carbon dioxide removal (CDR) technologies is increasing in addition to efforts to reduce greenhouse gas emissions. As companies accelerate initiatives to achieve net-zero targets, demand for high-quality, highly reliable CDR credits is growing, while supply remains limited.
Against this backdrop, Sumitomo Corporation has decided to collaborate with Graphyte, which possesses both technological advantages and commercial track records, in order to establish a business platform in the rapidly growing CDR sector.
Graphyte processes, compresses, and seals biomass residues—which would otherwise become a source of CO₂ emissions—and stores them underground to achieve long-term carbon sequestration and generate CDR credits. This technology, known as “Carbon Casting,” utilizes a proven process to remove CO₂. It is characterized by its high durability (long-term sequestration for over 1,000 years), as well as its cost competitiveness and scalability. Graphyte is backed by Breakthrough Energy Ventures, a climate and clean energy investment fund founded by Bill Gates in 2015. Breakthrough Energy Ventures is Graphyte’s largest shareholder.

Overview of the Business and Future Development

Under this initiative, the Joint Venture will initially focus on the generation and sale of CDR credits centered on the “Loblolly,” a CDR credit generation project operated by Graphyte in Arkansas, USA, which utilizes rice hulls. The “Loblolly” has been operating for over two years, and is being expanded to remove 50,000 metric tons of carbon dioxide per year. The “Carbon Casting” process is modular, so that the “Loblolly” and other projects developed through the Joint Venture can be scaled to meet commercial demand.
In addition to enabling low-cost and high-quality CDR, this business is expected to achieve early monetization, as the technology has already been commercialized in the USA.
Going forward, the Joint Venture will accelerate the development and expansion of its business portfolio through participation in multiple projects across North America. The business is also expected to capture new demand, including from Japanese companies, and plans are underway to supply CDR credits are also scheduled to be supplied customers including Nippon Yusen Kabushiki Kaisha (NYK Line).

Sumitomo Corporation will continue contributing to the realization of a carbon-neutral society through the generation and sale of CDR credits in the global market.

(*) Carbon credits that certify the environmental value of removing and permanently storing one ton of carbon dioxide from the atmosphere as one credit. CDR credits are attracting attention as an effective means of “emissions offsetting (carbon offsetting),” which is essential for achieving carbon neutrality.