Montreal-based Deep Sky has signed a ten-year carbon removal agreement with TD Bank Group, marking another corporate offtake deal for Canada’s emerging direct air capture sector.
Under the agreement, TD will purchase over 18,000 verified direct air capture carbon dioxide removal credits from Deep Sky. Financial terms were not disclosed.
The deal is intended to support TD’s long-term approach to addressing residual emissions through carbon dioxide removal technologies, while giving Deep Sky another corporate offtake agreement for Canadian-produced, engineered carbon removal supply.
“TD has built one of the most credible decarbonization programs in the financial services sector, and this agreement serves as a case study for enterprise carbon removal procurement,” said Charlie Renzoni, Vice President of Carbon Markets at Deep Sky. “It shows that carbon removal infrastructure can be built at scale, right here in Canada.”
TD has reduced its Scope 1 and 2 emissions by 29 percent against its 2019 baseline, according to the announcement. The bank said it will continue to prioritize emissions reductions, while using carbon removal technologies over time to voluntarily address residual emissions.
“TD’s approach has always been to reduce first and remove what remains with the highest-quality solutions available,” said Nicole Vadori, Vice President Global Sustainability at TD Bank. “Deep Sky gives us a Canadian path to do just that; their development of diversified DAC technologies aligns with TD’s approach to support a broad set of innovative clean technologies in North America.”
The agreement provides TD with carbon removal credits verified on a third-party registry over the next decade. Deep Sky said the deal strengthens Canada’s role in building permanent carbon removal infrastructure.
Representatives from Deep Sky and TD are expected to discuss the partnership during Toronto Climate Week at a flagship event hosted by the Lawson Climate Institute at the University of Toronto in partnership with MaRS and TD.
Susan Thompson, Managing Director and Head of Global Sustainable Finance & Advisory at TD Securities, said agreements like this can help scale the next generation of carbon removal solutions.
“By working with innovative providers like Deep Sky, we are helping to support the build-out of critical infrastructure, while positioning us to support clients as they integrate high-integrity carbon removal into their decarbonization strategies,” Thompson said.
The TD agreement follows recently announced Deep Sky partnerships with ENGIE and Lufthansa tied to the company’s direct air capture facilities.
Founded in Montreal, Deep Sky describes itself as a tech-agnostic carbon removal project developer focused on removing carbon from the atmosphere and permanently storing it underground. The company brings together direct air and ocean carbon capture technologies with the goal of supplying high-quality carbon credits to the market.
Deep Sky has raised $130 million and is backed by investors including Investissement Québec, Brightspark Ventures, Whitecap Venture Partners, OMERS Ventures, BDC Climate Fund, Breakthrough Energy Catalyst, BMO, and National Bank of Canada.