CALGARY,
AB and NEW YORK,
May 23,
2024 /CNW/ - Reconciliation Energy Transition Inc.
("RETI" or the "Company") is pleased to announce it has entered
into a Joint Development Agreement (the "JDA") with Sumitomo
Corporation, a leading global trading company based in Tokyo, Japan, through its subsidiary Ammolite
Carbon Sequestration (collectively "Sumitomo Corporation
Group").
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.
Appointment of RBC Capital
Markets
RETI is also pleased to announce the appointment of 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.
Commenting on the appointment of RBC Capital Markets,
Stephen Mason, Chairman & CEO,
stated, "RETI's vision resonates with the philosophy at RBC – that
of developing sustainable, forward-looking projects while
acknowledging the importance of Indigenous partnerships in
Canada's energy transition
landscape. As we continue and invest in low-carbon energy
transition projects, the guidance and expertise of RBC will be
instrumental."
As RETI advances, it remains steadfast in its commitment to
generating shareholder value, improving corporate ESG standards,
and shaping the future of renewable energy in Canada. With the support of strategic partners
like Sumitomo and RBC Capital Markets, RETI stands poised to
deliver viable projects in the low-carbon energy transition
economy.
About RETI
Established in 2019, RETI is a private development company
focused on low carbon energy transition projects in partnership
with Indigenous nations and industry. Our mission blends maximizing
shareholder value with a commitment to Environmental, Social and
Governance (ESG) principles. Our dedication to fostering meaningful
Indigenous ownership aligns with Canada's TRC Calls to Action #92 and UNDRIP
Principles, emphasizing our broader vision to economic
reconciliation, benefitting all involved. For more information,
visit www.reconciliationenergy.com.
About Sumitomo
Corporation
Sumitomo Corporation (TYO: 8053) is an integrated trading
company with a strong global network comprising 129 offices in 66
countries and regions. The Sumitomo Corporation Group consists of
approximately 900 companies and 80,000 employees on a consolidated
basis. The Group's business activities are spread across the
following nine groups: Steel, Automotive, Transportation &
Construction Systems, Diverse Urban Development, Media &
Digital, Lifestyle Business, Mineral Resources, Chemicals Solutions
and Energy Transformation Business. Sumitomo Corporation is
committed to creating greater value for society under the corporate
message of "Enriching lives and the world," based on Sumitomo's
business philosophy passed down for over 400 years. For more
information, please visit the Sumitomo Corporation home page at the
following link www.sumitomocorp.com.
Sumitomo Corporation's CCUS
Initiatives
Sumitomo Corporation has highlighted mitigation of climate
change as one of its key areas of focus whilst also committing to
being carbon neutral by 2050. Sumitomo Corporation recognizes
Carbon Capture Utilization and Storage ("CCUS"), as a key
technology to combat climate change, and, in January 2023, established a dedicated global CCUS
team, within its Energy Innovation Initiative Strategic Business
Unit, to focus on this business area. The involvement in the CTS
Hub will allow Sumitomo Corporation to further develop its CCUS
business footprint in North
America. Additionally, the experience gained from these
scopes will provide a strong basis to enable the global expansion
of Sumitomo Corporation's CCUS business activities.
About RBC
Royal Bank of Canada is a
global financial institution with a purpose-driven, principles-led
approach to delivering leading performance. Our success comes from
the 94,000+ employees who leverage their imaginations and insights
to bring our vision, values and strategy to life so we can help our
clients thrive and communities prosper. As Canada's biggest bank and one of the largest
in the world, based on market capitalization, we have a diversified
business model with a focus on innovation and providing exceptional
experiences to our more than 17 million clients in Canada, the U.S. and 27 other countries. Learn
more at www.rbc.com.
For more information, contact:
Stephen W. Mason,
Chairman & CEO
Reconciliation Energy Transition Inc.
(403) 613-5399
stephen.mason@reconciliationenergy.com
For media inquiries: media@reconciliationenergy.com
SOURCE Reconciliation Energy Transition Inc. ("RETI")