Deep Sky receives $40m for first DAC carbon removal site

Quebec-based carbon removal project developer Deep Sky has secured a $40m grant to support the development of its Deep Sky Alpha facility, the company’s first facility that is targeting a start-up date in Spring 2025.

Deep Sky Alpha, formerly Deep Sky Labs, will showcase several direct air capture (DAC) technologies to support Deep Sky’s goal of reducing the cost of large-scale carbon removal projects.

The company received the funding commitment from Breakthrough Energy Catalyst (Catalyst). The investment is Catalyst’s first in Canada and in DAC.

Damien Steel, CEO of Deep Sky, said the investment marks a significant milestone.

“The financial backing from Breakthrough Energy Catalyst will play a crucial role in helping Deep Sky realise its goals. The partnership with Catalyst and its expertise in what it takes to build projects at scale has already been transformative to Deep Sky.”

Deep Sky and Catalyst are committed to developing and deploying carbon dioxide removal technologies, which they see as essential in achieving Net Zero emissions goals and mitigating the impacts of climate change.

Powered by renewable energy, Deep Sky’s facilities are strategically located in Canada.

Mario Fernandez, Head of Breakthrough Energy Catalyst, said that Deep Sky Alpha offers a unique opportunity to demonstrate several DAC technologies and gain a deeper understanding of their potential and lower costs and scale.

“The world will ultimately need many approaches to carbon removal at prices far lower than is achievable today, but Deep Sky’s platform will enable and accelerate the kind of real-world innovation that could make affordable DAC achievable.”

What is DAC?

DAC technology removes CO2 directly from the atmosphere. Large-scale DAC facilities utilise specialised filters or chemical reactions to capture CO2 molecules.

Once captured, the CO2 can be stored underground or used in various industrial processes. DAC offers a promising solution for reducing atmospheric CO2 levels and combating climate change by actively removing greenhouse gases from the air.

However, critics of DAC denounce the technology for its high energy consumption, potentially high costs, and scalability issues. DAC facilities require significant energy inputs, often from fossil fuels, which may offset environmental benefits.