Sumitomo and Graphyte launch joint venture for biomass carbon removal credits from Arkansas rice hulls project

Japanese trading house Sumitomo Corporation has formed a joint venture with US decarbonization startup Graphyte, taking a 49% equity stake, to scale a carbon dioxide removal (CDR) credit business. Graphyte uses a process called Carbon Casting that compresses and seals biomass residues like rice hulls for underground storage with a claimed permanence of over 1,000 years. The venture will initially focus on Graphyte's Loblolly project in Arkansas, which is expanding to remove 50,000 metric tonnes of CO2 per year. The modular design of Carbon Casting allows replication across multiple sites in North America. Sumitomo expects early monetization given Graphyte's existing commercial track record in the US and plans to supply CDR credits to customers including Japanese shipping company NYK Line. Graphyte is backed by Breakthrough Energy Ventures. The deal shows growing interest from Japanese conglomerates in procuring high-quality carbon removal credits for hard-to-abate sectors like shipping.