Reconciliation Energy Transition Inc. and Sumitomo Corporation, through its subsidiary Ammolite Carbon Sequestration (Collectively "Sumitomo Corporation Group"), have announced that they have entered into a Joint Development Agreement for the RETI East Calgary Region Carbon Transportation & Sequestration Hub project ("CTS Hub") east of Calgary, Alberta. The RETI East Calgary Region Transportation & Sequestration Hub LP, a Limited Partnership established for the purpose of conducting project related activities, is also a signee to the agreement. Building upon the Exclusivity Agreement in October 2023, the parties have successfully finalized terms for Sumitomo Corporation Group to acquire a significant equity interest in the CTS Hub.

The CTS Hub project intends to progress the FEED study as soon as possible, targeting first CCS1 operations in FY2026. The CTS Hub is expected to involve construction of compression capacity, a CO2 pipeline network, and injection and monitoring wells to support permanent CCS in deep saline aquifers located east of Calgary, with a potential to store up to 10 million tonnes of CO2 per annum. The open-access hub will provide a CCS-as-a-service solution for both existing emitters, seeking to reduce emissions, and newly proposed energy transition facilities, providing solutions that will contribute towards realizing a Net Zero Canada by 2050, including, but not limited to: Power plants needing to comply with the Clean Energy Regulation; Clean hydrogen production facilities; Biofuel production facilities; Direct air capture (DAC)2 facilities; Other industrial emitters.

RETI and Sumitomo Corporation Group jointly envisage that, the CTS Hub project will be the start of a long-term partnership, with several other projects between RETI and Sumitomo Corporation Group currently being studied, including: The Calgary Region SAF3 Facility - RETI led project; DAC Facility - Sumitomo Corporation Group led project.