In this case study, Cosmo Oil, a leading Japanese energy and oil refining company, together with Kyoto University, I’MSEP, Sumitomo Heavy Industries, and SEC CARBON, launched a joint bench-scale testing initiative for CO2-derived solid carbon using molten salt electrolysis. The five-party consortium spans the full supply chain from CO2 supply to carbon material application. We evaluated this partnership to help your team structure similarly ambitious multi-party CCU alliances.
1. Executive Summary
In May 2026, Cosmo Oil, Kyoto University, I’MSEP, Sumitomo Heavy Industries, and SEC CARBON launched a joint bench-scale testing initiative for CO2-derived solid carbon using molten salt electrolysis. The five-party consortium spans the full supply chain from CO2 supply to carbon material application. Each partner contributes a distinct capability — from fundamental electrochemistry through process engineering to commercial carbon applications — creating a complete value chain that no single organization could develop alone.
- Subject: Cosmo Oil (energy/oil refining), Kyoto University (molten salt chemistry), I’MSEP (electrolysis startup), Sumitomo Heavy Industries (process engineering), SEC CARBON (carbon materials manufacturer)
- Problem: Carbon capture is expensive without valuable end products — converting CO2 to solid carbon creates economic incentive for capture
- Solution: Five-party value chain consortium covering every link from CO2 supply to commercial carbon applications
- Result: Bench-scale testing underway with verified electrolysis cell performance; pathway to pilot-scale
2. The Challenge
Most carbon capture and utilization (CCU) technologies produce low-value products that don’t justify the cost of capture. Converting CO2 to solid carbon — used in batteries, construction materials, and industrial applications — creates a higher-value end product, but no single company or university controls the full value chain from CO2 supply to carbon material application. Scale-up from laboratory electrochemistry to industrial production requires capabilities no one partner possesses.
- Low-value CCU trap: Most CCU technologies produce low-value products that don’t justify capture costs. Solid carbon has higher commercial value in batteries and industrial applications.
- Fragmented value chain: No single company or university controls the full value chain from CO2 supply to carbon material application.
- Scale-up complexity: Scale-up from laboratory electrochemistry to industrial production requires capabilities no one partner possesses alone.
Each party recognized that converting CO2 into valuable solid carbon required coordination across the entire supply chain — from the fundamental electrochemistry of molten salt electrolysis to the commercial application of carbon materials. The challenge was assembling and aligning a consortium that could cover every link in the chain.
3. The Strategy
Rather than a single bilateral partnership, the five parties built a full supply chain consortium that covers every capability needed to commercialize CO2-to-solid carbon. The consortium evolved organically from existing bilateral relationships — Cosmo Oil with Kyoto University (2023) and Cosmo Oil with I’MSEP (2024) — before expanding to the full five-party structure in 2026.
- Full supply chain consortium: Cosmo Oil (CO2 supply), Kyoto University (electrochemistry), I’MSEP (technology commercialization), Sumitomo Heavy Industries (process equipment), SEC CARBON (carbon applications) — every link covered.
- Staged expansion from bilateral partnerships: Cosmo-Kyoto (2023) → Cosmo-I’MSEP (2024) → five-party consortium (2026). Each new partner was added when the technology needed their specific capability.
- Phased scale-up: Bench-scale testing at several tens of kilograms annual scale → pilot-scale → commercial deployment. A deliberate stage-gate approach to technology maturation.
Resources were split by comparative strength: Kyoto University contributed fundamental electrochemistry expertise and academic validation; Cosmo Oil coordinated CO2 supply and energy integration; I’MSEP drove electrolysis technology commercialization; Sumitomo Heavy Industries designed process equipment; SEC CARBON evaluated carbon material applications. Each partner’s role was distinct and non-overlapping.
4. The Results
The consortium began bench-scale testing in May 2026, producing solid carbon at several tens of kilograms annual scale. Verified electrolysis cell performance at laboratory scale provides a clear pathway to pilot-scale operations. Commercial-scale carbon production and market applications are projected within 2-5 years pending successful technology validation.
- Bench-scale production: Solid carbon production at several tens of kilograms annual scale — realistic technology validation before moving to pilot.
- Verified electrolysis performance: Electrolysis cell performance confirmed at laboratory scale with a defined pathway to pilot-scale operations.
- Full value chain coverage: The consortium covers every link from CO2 supply through carbon material evaluation — a comprehensive approach rare in CCU partnerships.
The consortium’s staged approach — building from bilateral research (2023-2025) to bench-scale testing (2026) — demonstrates methodical technology maturation. The five-party structure positions the consortium for pilot-scale expansion as technical milestones are achieved.
5. The Melan Approach
Melan advises structuring partnerships like this one when the technology gap requires coordinating capabilities across the full value chain — the consortium model works best when no single organization controls all the capabilities needed to commercialize a technology.
- Governance model: Joint research framework with defined work packages per partner. Melan would recommend adding a formal commercial advisory board to evaluate carbon product market applications and ensure technical success translates into commercial reality.
- Risk allocation: Consortium structure distributes scale-up risk across five parties. Melan recommends allocating budget for independent third-party technology validation to provide objective performance assessment before pilot-scale investment.
- Shared goal: Create economic incentive for carbon capture by converting CO2 into valuable solid carbon products at commercial scale. Melan would add mid-term governance review clauses that allow the consortium to adjust partner roles without renegotiating the entire agreement.
This value chain consortium model is replicable at smaller and larger scales for any CCU technology — or any industrial process — that requires multi-party coordination to reach commercial scale. The key is mapping the full value chain and recruiting partners to fill every capability gap.
Building a multi-party CCU consortium?
Melan helps energy and industrial companies structure value chain consortia with defined partner roles, IP frameworks, and stage-gate scale-up pathways.
