Mitsui O S K Lines : 2024/12/05 MOL Switch to Invest in Heirloom, a U.S. DAC Technology Developer Contributing to Spread and Expansion of Negative Emissions

December 05, 2024

TOKYO-Mitsui O.S.K. Lines, Ltd. (MOL; President & CEO: Takeshi Hashimoto) today announced that its wholly owned subsidiary MOL Switch LLC (Representative & CEO: Tomoaki Ichida; Headquarters: California, U.S.) , which aims to invest in decarbonization technologies, became the first Japanese company to participate in Heirloom Carbon Technologies, Inc. (Heirloom; Representative & CEO: Shashank Samala; Headquarters: California, U.S.) , a developer of Direct Air Capture (DAC Note 2) technology. MOL, along with Mitsubishi Corporation invested through a simple agreement for future equity (SAFE) (Note 3) in July 2023. In addition, Heirloom recently completed a $150 million financing, along with several Japanese companies, including Mitsui & Co., Ltd. and Japan Airlines Co., Ltd.

(Heirloom DAC Facilities)

Heirloom is the world's leading U.S. developer of DAC, a technology that removes CO₂ directly from the atmosphere. Unlike conventional amine methods, Heirloom's DAC technology uses limestone, the second most abundant and inexpensive mineral in the world, as a raw material, reducing the costs of the technology. Heirloom's "Cypress" project (Note 4) is in development in the U.S. state of Louisiana, and has received a grant of up to US$600 million from the U.S. Department of Energy. The project's goal is to remove about 1 million tons of CO₂ per year from the atmosphere.

[Heirloom DAC Technology]

• Step1:
  Mining and crushing limestone(CaCO₃)
• Step2:
  High-temperature calcination of CaCO₃ in a sintering furnace
  Decomposed into calcium oxide (CaO) and CO₂
  CO₂ is stored underground and used as a raw material for other products
• Step3:
  CaO is hydrated with water to form calcium hydroxide (Ca(OH)₂)
• Step4:
  Ca(OH)₂ is spread on the tray, CO₂ in the atmosphere is adsorbed.
  It becomes limestone again and is reused.

Through this investment, MOL will contribute to the improvement of DAC technology, a form of negative emissions, and strive to promote and expand negative emissions throughout society.

The MOL Group aims to become a social infrastructure company under its BLUE ACTION 2035 management plan, and plans to strengthen non-shipping business fields and proactively invest in them. Furthermore, the group has set the target of achieving net zero GHG emissions for the entire group by 2050 in the "MOL Group Environmental Vision 2.2." It aims to achieve decarbonization of society as a whole by contributing to the spread and expansion of negative emissions.

[Outline of Heirloom Carbon Technologies]

Company name	Heirloom Carbon Technologies, Inc.
Location	California, U.S.
Established	2020
Representative	Shashank Samala (CEO)
Company website	https://www.heirloomcarbon.com

(Note 1) For more information on MOL Switch, please refer to the May 31, 2023, press release: MOL has established 'MOL Switch' in the USA, to invest in decarbonization technologies.

(Note 2) DAC: Direct air capture- A technology that directly collects carbon dioxide from the atmosphere using absorbents or chemical reactions. The recovered carbon dioxide is stored underground or used as a raw material for other purposes.

(Note 3) Simple Agreement for Future Equity (SAFE) provides funding in exchange for the right to convert future equity. It is often used to fund startups.

(Note 4) "Cypress," the first DAC project, is in development in Louisiana, led by the Battelle Memorial Institute, a U.S.-based science and technology development firm. The project has been selected as one of the Regional Direct Air Capture Hubs, a grant program offered by the U.S. Department of Energy, and will receive up to US$600 million in funding.

MOL Group 5 Sustainability Issues
MOL Group identifies "Sustainability Issues" (Materiality) as our key issues for sustainable growth with society through realization of the Group Vision.
We anticipate this initiative to contribute especially to the realization of "Environment -Conservation for Marine and global environment-" and "Innovation -Innovation for development in marine technology-".