Canada-based carbon removal project developer Deep Sky announced today a new 10-year carbon dioxide removal (CDR) offtake agreement with TD Bank Group, providing for the purchase of more than 18,000 CDR credits from Deep Sky’s direct air capture (DAC) facilities.
The companies said that the deal will support the development of permanent carbon removal infrastructure in Canada while strengthening the country’s position in the emerging carbon removal market.
Founded in 2022, Montreal-based Deep Sky develops carbon removal projects using a range of technologies, including direct air capture and ocean carbon capture, with a goal of removing gigatons of carbon dioxide from the atmosphere and permanently storing it underground. The company’s customers include Microsoft, Royal Bank of Canada, and Google through Frontier Climate, alongside several other corporate buyers.
Charlie Renzoni, Vice President of Carbon Markets at Deep Sky said:
“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. It shows that carbon removal infrastructure can be built at scale, right here in Canada.”
According to TD, the bank has reduced its Scope 1 and 2 greenhouse gas emissions by 29% compared to its 2019 baseline. While the bank said it remains focused on reducing operational emissions, it plans over time to address residual emissions through voluntary investments in carbon dioxide removal technologies.
Under the agreement, TD will receive Canadian-produced, engineered carbon removal credits from Deep Sky over the next decade, with removals verified through an independent third-party registry. The companies said the deal highlights the growing role of long-term offtake agreements in supporting the commercialization and scaling of permanent carbon removal technologies.
Susan Thompson, Managing Director and Head of Global Sustainable Finance & Advisory at TD Securities said:
“Deals like this represent an important step toward scaling 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.”
