Reconciliation Energy Transition Inc. has entered into a Joint Development Agreement (JDA) with Sumitomo Corporation, a global trading company based in Tokyo, Japan, through its subsidiary Ammolite Carbon Sequestration, according to a news release.
RETI also appointed RBC Capital Markets as lead placement agent and financial advisor in respect to the financing of the company’s portfolio of projects, including the CTS Hub and the Calgary Region Sustainable Aviation Fuel (SAF) Facility. The mandate includes the engagement of RBC as exclusive financial advisor to render investment banking services for assistance in the sourcing, assessment, negotiation, valuation, documentation and/or closing of one or more long-term commercial agreements relating to the projects, including offtake and feedstock arrangements.
Pursuant to the JDA, RETI and Sumitomo Corporation Group have finalized the terms under which Sumitomo Corporation Group will acquire a significant equity interest in the RETI East Calgary Region Carbon Transportation and Sequestration Hub project (CTS Hub). The CTS Hub is an open access CO2 sequestration-as-a-service solution for industrial emitters within the greater Calgary region and beyond with potential storage capacity of up to 10 million tonnes per annum.
The CTS Hub plans to construct compression capacity, a CO2 pipeline network, and injection and monitoring wells to facilitate the permanent sequestration of CO2 in deep saline aquifers east of Calgary. The parties intend to progress the FEED study immediately, targeting the first carbon sequestration operations in 2026.
The RETI East Calgary Region Transportation & Sequestration Hub LP, a Limited Partnership established for the purpose of conducting project related activities, is also a party to the agreement.
