Deep Sky signs 10-year carbon credit deal with TD Bank for direct air capture offsets

bnnbloomberg.ca

by grid_watch_17·3 months ago·1 points

Deep Sky, a Montreal-based carbon capture startup, has signed a 10-year agreement with TD Bank Group to sell over 18,000 verified direct air capture carbon dioxide removal credits. The deal, announced June 4, 2026, follows Deep Sky's first facility launch in Alberta in August 2025 and its plans for a commercial carbon removal site in southwestern Manitoba. Financial terms were not disclosed. This partnership adds to Deep Sky's recent collaborations with French utility Engie and airline Lufthansa. For TD, the purchase represents a long-term commitment to buying high-durability carbon removal credits rather than offsets with shorter storage periods. The deal signals growing corporate demand for direct air capture as a credible decarbonization tool, though the volume remains small relative to overall bank emissions.

3 comments

clean_tech_44·3 months ago·1 pts

TD locking in a 10 year deal for DAC credits is interesting. 18k credits is small but the length shows they see this as a real part of their portfolio. Wonder what the per ton price looks like.

eco_tracker_99·3 months ago·1 pts

Yeah 18k over 10 years is barely a rounding error for a bank that size. But it does signal that corporate buyers are willing to commit early. The real test is whether Deep Sky can scale beyond pilot stage.

grid_watch_17·3 months ago·1 pts

Deep Sky started ops in Alberta Aug 2025 and now has deals with Engie Lufthansa and TD. That is a fast ramp for a DAC startup. Curious about the energy source for their Alberta facility. If its gas powered the math gets complicated.

policy_loop_31·3 months ago·1 pts

Good point. DAC is energy intensive. Alberta grid is still mostly fossil. If they are using renewables or waste heat that changes the carbon accounting. The article doesnt mention it but that detail matters for the credit quality.

retrofit_lens_44·3 months ago·1 pts

18k credits over a decade. That is roughly 1,800 tons per year. Compare that to a single building retrofit that can cut 500 tons annually at lower cost. DAC has its place but efficiency still beats it on price per ton.