Sumitomo Corporation (head office: Chiyoda-ku, Tokyo; Representative Director, President and CEO: Shingo Ueno), through its wholly-owned subsidiary in the UK, Summit Energy Evolution Limited (“SEEL”), has agreed new funding for the development of the CO₂ transport pipeline, to support Peak Cluster Carbon Capture project (“Peak Cluster”). Peak Cluster will capture CO₂ from four plants in and around the Peak District, which currently produce 40% of the UK’s domestic cement and lime production, vital for key sectors of the economy including construction, manufacturing and environmental protection. CO₂ transported by new-build pipeline will contribute to the industry’s decarbonization as part of the CCS (*1) value chain. Through this investment, Sumitomo Corporation will further promote Energy Transformation, one of the growth areas in its current Medium-Term Management Plan.

Project Overview

Since originating the project in 2022, Progressive Energy, a UK low carbon energy developer, has collaborated with the cement manufacturers Tarmac, Breedon, SigmaRoc and Holcim through pre-FEED (Front-End Engineering and Design).
SEEL, through its joint venture vehicle Progressive Energy Peak Limited (“PEPL”), has agreed to make equity investment into Peak Cluster Limited (“PCL”), the project company for the CO₂ transport pipeline development. National Wealth Fund, the UK government's principal investor and policy bank, is also making a new investment in PCL.

The planned total investment of £59.6 million will be used to further develop the CO₂ transport pipeline project through to a Final Investment Decision (FID) as early as 2028. This includes the successful completion of FEED and other studies that underpin the regulatory approval and consenting process.

Cement and lime are two of the hardest industrial sectors to decarbonize due to the high levels of process emissions which cannot be mitigated through a transition to low carbon fuels. CCS is therefore essential to the decarbonization of the sector.

The UK is a leading country in the global CCS sector, with the government aiming to capture 50 million tons of CO₂ annually by 2035. Peak Cluster will decarbonize the UK’s largest group of cement and lime plants, and transport 3 million tonnes of CO₂ annually, contributing to the realization of UK Government’s target.

The new build buried onshore pipeline will become part of a full value chain CCS network, which will transport the CO₂ emissions captured on industry sites to the coast, to be stored permanently deep under the seabed of the East Irish Sea within Morecambe Net Zero (MNZ) project (*2) being developed by Spirit Energy, a UK energy company. Peak Cluster CCS network will help decarbonize hard-to-abate industries and secure the future of this critical industry and safeguard and create 13,000 jobs including the Spirit Energy’s storage.

Sumitomo Corporation's carbon storage business strategy

Sumitomo Corporation has been developing its CO₂ capture, transport/storage and utilization businesses by leveraging the experience accumulated since the 1970s in the upstream oil and gas business, as well as its knowledge of various business domains and supply chains. In addition to its acquisition of two carbon storage licenses in the UK in 2023, the company will further build up its experience in CO₂ transport and storage in the UK. The CO₂ transport is a pre-matured business with potential commercial and technical challenges, which requires significant experience and capabilities to achieve the commercialization. Sumitomo Corporation will leverage its experience gained from global CCS activities as well as steel pipeline supply business to advance this project, using the knowledge gained there to expand its business to the Americas and the Asia-Pacific region.

(*1) CCS: abbreviation for Carbon dioxide Capture and Storage, i.e., the capture and storage of CO₂ emitted from industrial activities
(*2) Morecambe Net Zero project: a project in collaboration with Peak Cluster to repurpose depleted gas fields in the East Irish Sea for carbon storage, offering scalable and secure capacity for industrial emissions.
(*3) CCUS: abbreviation for Carbon dioxide Capture, Utilization and Storage, i.e., the capture, storage and utilization of CO₂ emitted from industrial activities

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