Memorandum of Understanding with Fortera Corporation for the Project Feasibility Study of a Low-Carbon Cement Production- Project commences to explore commercialization in Japan achieving 60% reduction in CO₂ emissions -

Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno) has signed a memorandum of understanding (MOU) with Arelac, Inc. dba Fortera ("Fortera"), a company that Sumitomo Corporation invested in through its US-based venture capital arm, Presidio Ventures, Inc., in 2023. The MOU focuses on a feasibility study to construct a commercial scale low-carbon cement plant in Japan. The project will be pursued in collaboration with Sumitomo Osaka Cement Co., Ltd. (Head Office: Minato-ku, Tokyo; Representative Director and President: Hirotsune Morohashi), a major cement manufacturer in Japan.

Cement, the key ingredient in concrete, plays a vital role in the circular economy by using large amounts of industrial waste as raw materials and sources of heat during production. However, CO₂ emissions from cement manufacturing account for approximately 4% of Japan’s total emissions (around 40 million tons annually), making it one of the largest sources of CO₂ emissions after steel and chemicals. Some 50% of the CO₂ emissions generated by cement manufacturing comes from the thermal decomposition of limestone. Reducing CO₂ emissions from this process remains a global challenge.

Fortera has developed a technology that captures the CO₂ emitted during cement production and recarbonate it into calcium oxide, producing a granular form of calcium carbonate that is different from that before thermal decomposition. By recarbonating CO₂ and others, this technology enables a 60% reduction in CO₂ emissions associated with cement production, allowing for the production of low-carbon cement. Additionally, when paired with renewable energy (as the heat source), it is possible to produce carbon-free cement, eliminating all CO₂ emissions in the manufacturing process.

Overview of Fortera’s Cement Production Technology and CO₂ Reduction Impact

• In conventional cement manufacturing, in addition to limestone, clay, silica stone, and iron oxide materials (which are substituted with industrial waste and by-products) are also burned simultaneously, requiring a high temperature of approximately 1,450℃. On the other hand, during the production of Fortera cement, only limestone is burned, requiring a temperature of approximately 900°C. This is lower than the combustion temperature for conventional cement, enabling a 10% reduction in CO₂ emissions during combustion.

Sumitomo Corporation and Fortera aim to pilot production in Japan as early as fiscal year 2026, while obtaining technical evaluation from Sumitomo Osaka Cement through this feasibility study. Further, through collaboration with Fortera, Sumitomo Corporation is also considering expanding the business model developed in Japan to other parts of Asia.

About Fortera

Company Name	:	Arelac, Inc., dba Fortera
CEO & Co-Founder	:	Dr. Ryan Gilliam Ryan Gilliam was named one of TIME Magazine’s "100 Most Influential Leaders in Climate Change" in the "Innovators" category.
Founded	:	2019
Business Overview	:	Manufacturer of green cement that reduces CO2 emissions during production.

---