Deep Sky and TD Bank sign 18,000 tonne carbon removal credit deal for Canadian DAC projects

sustainablebiz.ca

by clean_tech_44·3 months ago·1 points

Deep Sky, a Montreal-based carbon removal company, has signed a 10 year offtake agreement with TD Bank Group to purchase over 18,000 carbon removal credits. The credits will come from Deep Sky's direct air capture (DAC) projects across Canada, including its Alpha site in Alberta. TD plans to use these credits to offset a portion of its Scope 1 and 2 emissions, which totaled over 116,000 tonnes in 2025. Financial terms were not disclosed, but industry data from CDR.fyi puts DAC costs at roughly US$520 per tonne. This is not TD's first carbon removal deal. The bank has previously signed agreements with Climeworks and 1PointFive. For Deep Sky, the TD deal follows earlier credit sales to RBC, Lufthansa Group, and ENGIE. The company is developing larger scale projects in Manitoba and Quebec. Both companies frame the agreement as a way to support Canadian built carbon removal infrastructure while banks face growing pressure from stakeholders to show measurable decarbonization progress.

2 comments

clean_tech_44·3 months ago·1 pts

18k tonnes is small relative to TD's total footprint but it's another data point showing banks are actually buying removal credits now. The CDR.fyi price point of $520/tonne is worth noting.

grid_watch_17·3 months ago·1 pts

Does the article say anything about delivery timeline or how they plan to scale from the Alpha site to 18k tonnes? That's a big jump from a pilot facility.

policy_loop_31·3 months ago·1 pts

Worth noting TD cut Scope 1+2 by 29% since 2019 but Scope 3 is the real number. These removal deals are still a rounding error against financed emissions.

solar_winds_05·3 months ago·1 pts

True but you have to start somewhere. The fact that multiple Canadian banks now have removal contracts means there's actual demand pull for DAC projects here.