Jan. 22, 2024
Sumitomo Corporation has invested in Inherit Carbon Solutions, a pioneer in CO2 removal (CDR) from biogas- contributing to the realization of a carbon-neutral society -
Sumitomo Corporation has invested in Inherit Carbon Solutions AS (Inherit), a Norwegian company that removes CO2 from the atmosphere through the biomethane production process.
Global expansion of the CCUS business by leveraging Inherit's CDR creation expertise
CO2 removal (CDR) – an approach to offset residual emissions that are hard to abate is necessary to achieving net zero, - is gaining attention. The market for carbon credits, issued through the use of negative emission technologies(*1), including Direct Air Carbon Capture and Storage (DACCS) and Bioenergy with Carbon Capture and Storage (BECCS), is projected to grow from the current USD 2.1 billion to USD 80 billion by 2030.
Inherit is a pioneer in biomass-derived CDR, in which the CO2 emitted during the production process by biomethane(*2) producers is captured and permanently sequestrated in geological storage. Inherit aims to use CO2 geological storage in the Nordic region to create CDR-derived credits from 2025 and has already signed offtake agreements with Microsoft and other partners.
By combining our global network and creditworthiness with Inherit's expertise in CDR, Sumitomo Corporation and Inherit aim to remove millions of tons of CO2 from the atmosphere over the next decade. The collaboration will involve securing necessary storage providers in Europe, North America and Asia. Additionally, the partnership will focus on creating CDR credits. The practical implementation of CDR credit-creation will accelerate the development of the CCUS value-chain, therefore contributing to the realization of a carbon-neutral society.
Sumitomo Corporation's CCUS Initiatives
Sumitomo Corporation Group considers CCUS as one of the key tools for achieving carbon neutrality in its business activities and a sustainable energy cycle by 2050. The Group is actively involved in business development across Europe, the USA and Asia, focusing on CO2 separation and capture, transport and storage, and utilization. Given the limited storage sites suitable for CCS, Sumitomo Corporation Group aims to leverage this project as a stepping stone for the early commercialization of CCUS, particularly in Europe and the USA, where it has a head start. In the future, the company plans to apply its accumulated business know-how to develop large-scale projects globally and build a value chain.
Sumitomo Corporation will continue to work on the creation and sale of high-quality credits for CDR, essential to achieving net zero.
- Negative emission technologies
Technologies which aim to achieve net negative CO2 emissions by combining the capture of atmospheric CO2 and CO2 generated from biomass with sequestration, etc. The Ministry of Economy, Trade and Industry (METI) set up the “Study Group for Creating Markets of Negative Emissions Technologies” in 2023 and is considering its use in Japan.
Future Directions Compiled for Social Implementation and Industrialization of Negative Emissions Technologies (NETs) Required for Achievement of Carbon Neutrality (CN) by 2050 (meti.go.jp)
Biomethane is the purified version of biogas, produced from the breakdown of organic matter. It is one of the main renewable gases of the future and available today to help decarbonize the EU's energy system.