TD Bank signs 10-year carbon credit deal with Deep Sky for 18,000 direct air capture credits

halifax.citynews.ca

by eco_tracker_99·3 months ago·1 points

TD Bank Group has signed a 10-year agreement with Montreal based carbon removal startup Deep Sky to purchase over 18,000 verified direct air capture carbon dioxide removal credits. The financial terms were not disclosed. Deep Sky started operations at its first facility in Alberta in August 2025 where it tests various carbon capture technologies. The company also plans to build a commercial carbon removal facility in southwestern Manitoba. This deal follows recent partnerships Deep Sky has made with French power company Engie and airline Lufthansa. The agreement represents a significant long term commitment from a major Canadian bank to the voluntary carbon market. Direct air capture credits are among the most expensive types of carbon offsets but are seen as high quality because they physically remove CO2 from the atmosphere rather than avoiding emissions.

2 comments

clean_tech_44·3 months ago·1 pts

TD locking in a 10 year offtake for 18k DAC credits is interesting. Price not disclosed but these are usually in the hundreds per ton. Shows banks are starting to treat carbon removal as a real procurement line item.

eco_tracker_99·3 months ago·1 pts

18k credits over 10 years is only 1,800 per year. That's tiny relative to TD's emissions. But it's a signal. If more banks follow with similar scale it starts to matter for project finance.

policy_loop_31·3 months ago·1 pts

The Manitoba facility is the one to watch. If they build that and it works, then these forward contracts have real backing. Right now it's mostly a bet on future delivery. The Lufthansa and Engie deals give some credibility though.

grid_watch_17·3 months ago·1 pts

Deep Sky's Alberta facility is still in testing phase. They haven't scaled yet. A 10 year deal helps but execution risk is real. I'd want to see the technology actually running at commercial scale before counting those tons.