Quebec developer secures $57M to build carbon capture facility

Key Takeaways:

• Deep Sky, a Quebec-based company, has secured a $57M grant from Breakthrough Energy Catalyst to construct its Deep Sky Alpha facility and advance the development of direct air capture (DAC) technologies.
• Deep Sky Alpha will test multiple DAC technologies to identify the most effective solutions for large-scale carbon removal.
• This initiative aligns with Catalyst’s mission to support scalable and high-impact climate technologies.

The Whole Story:

Deep Sky, a Quebec-based carbon removal project developer, announced that it has secured a $57M million grant commitment from Breakthrough Energy Catalyst . The funds, subject to the satisfaction of funding conditions, will be allocated to the construction of Deep Sky Alpha (formerly Deep Sky Labs) and its associated research and testing of direct air capture (DAC) technologies. Deep Sky Alpha will deploy multiple DAC technologies to test and identify the most promising technologies, as part of Deep Sky’s initiative to lower the cost of large-scale commercial carbon removal. This marks Catalyst’s first-ever investment in both a Canadian and Direct Air Capture (DAC) project.

The Catalyst program funds large demonstration projects and invests in first-of-a-kind commercial projects that use emerging climate technologies. It prioritizes projects with high-impact and scalable climate tech that need additional capital to reach commercial scale. Alpha is Deep Sky’s first facility and is scheduled to be operational and delivering carbon removal credits by Spring 2025.

Catalyst officials explained that they are supporting Deep Sky’s efforts to build large-scale carbon removal and storage infrastructure in Canada. As a project developer, Deep Sky is working to bring together the most promising direct air and ocean capture technologies to accelerate delivery of high-quality carbon removal credits to the market. Powered by renewable energy, Deep Sky’s facilities are strategically located in Canada, a region with all of the natural resources to become a world leader in carbon removal. Catalyst noted that hydroelectric power, wind power potential, and a rich geological makeup make it an ideal place for engineered carbon removal and storage.

“Securing support from Breakthrough Energy Catalyst marks another milestone for our company and for the DAC industry,” said Damien Steel, Deep Sky CEO. “The financial backing from Breakthrough Energy Catalyst will play a crucial role in helping Deep Sky realize its ambitious goals. However, the partnership with Breakthrough Energy Catalyst and their expertise into what it takes to build projects at scale has already been transformative to Deep Sky.”

Together, Deep Sky and Catalyst stated that they are committed to developing and deploying cutting-edge carbon dioxide removal (CDR) technologies. High-quality CDR is essential for achieving net-zero emissions goals and mitigating the impacts of climate change.

“In 2025, Deep Sky will deliver on our promise to rapidly scale carbon removals, and we remain unapologetically ambitious as we look to the future,” Steel added.

Catalyst currently focuses on five technology areas: clean hydrogen, sustainable aviation fuel, direct air capture, long-duration energy storage, and manufacturing decarbonization. In addition to capital, Catalyst leverages the team’s energy-infrastructure-investing and project-development expertise to work with innovators on advancing their projects from the development stage to funding and ultimately, to construction.