A US carbon removal company has secured investment from Japanese trading firm to expand a facility in Arkansas.

The investment by Sumitomo is notable because it represents one of the first known examples of project-level financing for a durable carbon removal facility.

Japanese trading house Sumitomo Corp. has invested in a U.S. carbon dioxide removal project run by American startup Graphyte that takes carbon out of the atmosphere by burying rice hulls.

Global trading conglomerate Sumitomo Corporation acquired an equity stake in Graphyte’s Loblolly project, marking one of the first known instances of project-level investment in a durable carbon removal facility.