Canadian carbon removal project developer Deep Sky has taken a significant step in the fight against climate change by selling carbon removal credits to founding buyers Royal Bank of Canada and Microsoft.
This agreement commits Deep Sky to remove 10,000 tonnes of CO₂ over the next decade through Deep Sky Labs, the world’s first carbon removal innovation and commercialization center, based in Innisfail, Alberta. This milestone marks a major advancement in private-sector investment in scalable carbon removal technologies.
Deep Sky Labs will serve as a central hub for testing and optimizing multiple Direct Air Capture (DAC) technologies under Canadian conditions. The facility aims to accelerate the development of low-cost, low-energy, and scalable solutions for carbon dioxide removal (CDR), supported by a proprietary software system that tracks and benchmarks operational data. The lab will initially deploy eight cutting-edge DAC technologies side-by-side, providing access to renewable energy and permanent carbon storage to ensure lifecycle analysis and third-party verification of carbon removal credits.
“This first group to invest catalytic capital in carbon removal gives us more confidence than ever that we can overcome humanity’s greatest challenge and reverse climate change,” said Deep Sky CEO Damien Steel. “Deep Sky Labs acts as a focal point for investors, suppliers, customers, and other partners seeking a direct path to top-tier carbon removal technologies.”
Among the selected DAC providers are leading-edge companies such as Airhive, Avnos, Phlair, Greenlyte, Mission Zero, NEG8 Carbon, Skyrenu, and Skytree, each bringing unique CO₂ removal technology to the Alberta-based facility. Chosen from nearly 100 global candidates, these technologies emphasize simplicity, scalability, and low energy requirements, forming a robust foundation for Deep Sky’s commitment to address the growing urgency of climate mitigation.
Deep Sky’s partnership with RBC and Microsoft represents a new model of corporate investment in carbon removal, allowing these organizations to support multiple DAC technologies through a single purchase. The founding buyers also have the option to purchase an additional one million tonnes of CO₂ removals from Deep Sky’s commercial pipeline, signaling long-term commitment and fostering continuous innovation in the carbon removal sector.
The Innisfail facility will create approximately 80 construction jobs and sustain 15 annual operational roles, generating an estimated $100 million in local investment over a decade. Future commercial plants across Canada could further expand economic benefits, with potential to employ up to 1,000 construction workers and 150 operational staff per site annually.
As companies worldwide strive to meet decarbonization goals, Deep Sky’s verified carbon removal credits offer a rigorous offset solution. Backed by strict Measurement, Reporting, and Verification (MRV) standards, these credits ensure transparency and additionality in offsetting corporate emissions.
