Deep Sky chooses Manitoba site for $200M project

Key Takeaways:

• Construction of the first phase—with 30,000 tonnes of annual removal capacity—is slated to begin in 2026.
• The facility will use direct air capture technology to pull carbon dioxide from the atmosphere and store it underground.
• Performance data from Deep Sky Alpha in Alberta, a 3,000-tonne-per-year facility, will inform technology selection for the Manitoba project,

The Whole Story:

Montreal-based Deep Sky has chosen southwestern Manitoba as the site for a commercial carbon removal facility with an annual capacity of 500,000 tonnes of CO₂ at full scale, the company said Thursday.

The project, Deep Sky Manitoba, will be built in phases. Construction of the first phase—with 30,000 tonnes of annual removal capacity—is slated to begin in 2026, representing an investment of more than $200 million, the company said in a news release.

The facility will use direct air capture technology to pull carbon dioxide from the atmosphere and store it underground. Deep Sky describes itself as the world’s first tech-agnostic carbon removal project developer.

Southwestern Manitoba offers geology suitable for underground CO₂ storage, and the province passed enabling legislation in 2024. Specific regulations are expected this fall. Manitoba’s hydroelectric grid will provide renewable energy to power the capture process, the company said.

Deep Sky has signed a declaration of relationship with the Dakota Grand Council to explore investment and partnership opportunities with the Dakota Nations of Manitoba.

“Our Dakota long term economic development strategy is to partner with and invest in sectors that align with our vision of a sustainable ‘TOKATA’ (Future),” said Chairman Raymond Brown, Dakota Grand Council and chief of Canupawakpa Dakota Nation.

The company is evaluating potential sites and has begun engaging with municipal, Indigenous and local stakeholders. Final site selection is expected this fall, with drilling of the storage well planned by year-end.

“Southwestern Manitoba perfectly embodies what the carbon removal industry needs to succeed: ideal geology, clean energy, a skilled workforce, and forward thinking leadership,” said Alex Petre, Deep Sky chief executive officer.

Jamie Moses, Manitoba’s minister of business, mining, trade and job creation, said the project “reinforces Manitoba’s leadership in reducing global CO₂ emissions.”

The first phase will bring construction and operational jobs, along with opportunities for local businesses and suppliers, the company said.

Deep Sky recently began operations at Deep Sky Alpha in Alberta, a 3,000-tonne-per-year facility hosting up to 10 different direct air capture technologies. Performance data from that site will inform technology selection for the Manitoba project, the company said.

Deep Sky has raised $130 million in funding from investors including Investissement Québec, Brightspark Ventures, OMERS Ventures, BDC Climate Fund, Breakthrough Energy Catalyst, BMO and National Bank of Canada. The company is also developing projects in Quebec.