Deep Sky Signs Ten-Year Direct Air Capture Agreement with TD Bank for Over 18,000 Canadian Carbon Removal Credits

Deep Sky has announced a ten-year offtake agreement with TD Bank Group under which TD will purchase over 18,000 verified direct air capture carbon dioxide removal credits from Deep Sky's Canadian facilities, providing TD with a decade of engineered, permanent carbon removal supply verified on a third-party registry. The agreement marks TD Bank's second carbon removal commitment announced within days, following a separate ten-year agreement with Climeworks Solutions covering a managed portfolio of enhanced rock weathering, biochar, BECCS and future direct air capture credits across North America. The Deep Sky agreement is specifically Canadian in origin and delivery, with Charlie Renzoni, Vice President of Carbon Markets at Deep Sky, describing it as two Canadian organisations doing something that matters for Canada and a case study for enterprise carbon removal procurement.

 

Deep Sky's Technology and Canadian Infrastructure Ambitions

 

Deep Sky is developing direct air capture facilities in Canada with a focus on deploying diversified DAC technologies rather than concentrating on a single approach, providing buyers with exposure to multiple removal pathways within a single supplier relationship. The company has recently announced partnerships with ENGIE and Lufthansa Group in addition to the TD Bank agreement, demonstrating growing international corporate interest in Canadian direct air capture credits alongside the domestic financial institution demand the TD deal represents. The development of verifiable DAC infrastructure in Canada is strategically significant given the country's recent FinDev Canada capitalisation announcement and its stated ambitions to position itself as a hub for clean technology and carbon removal innovation.

Nicole Vadori, Vice President Global Sustainability at TD Bank, said TD's approach has always been to reduce first and remove what remains with the highest-quality solutions available, and that Deep Sky gives TD a Canadian path to do just that. She said the development of diversified DAC technologies aligns with TD's approach to support a broad set of innovative clean technologies in North America, reinforcing that the agreement reflects a strategic technology support commitment rather than purely a compliance-driven offset purchase. TD has reduced its Scope 1 and 2 emissions by 29 percent against its 2019 baseline and plans to use carbon dioxide removal technologies to voluntarily address residual emissions over time as physical emissions reductions approach their practical limits.

 

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The Canadian Carbon Removal Market Context

 

The Deep Sky and TD Bank agreement reflects an emerging Canadian carbon removal market in which domestic financial institutions and technology companies are beginning to create the demand signals needed to anchor the capital-intensive direct air capture infrastructure investment required for commercial scale. Canada's combination of low-carbon electricity from hydropower, geological storage potential and growing policy support for clean technology creates a competitive foundation for DAC development that is distinct from US and European markets. The participation of both TD Bank and Deep Sky at the Toronto Climate Week flagship event hosted by the Lawson Climate Institute at the University of Toronto reinforces the partnership's positioning within Canada's climate innovation ecosystem.

Susan Thompson, Managing Director and Head of Global Sustainable Finance and Advisory at TD Securities, said deals like this represent an important step toward scaling the next generation of carbon removal solutions and that working with innovative providers like Deep Sky helps build out critical infrastructure while positioning TD to support clients integrating high-integrity carbon removal into their decarbonisation strategies. This client-facing dimension of the agreement is significant for a bank of TD's scale, as it positions the institution as a knowledgeable carbon removal participant that can advise corporate clients on procurement as well as executing its own commitments.

 

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Outlook for Canadian Direct Air Capture Development

 

The combination of the Deep Sky agreement with TD Bank alongside the separately announced Climeworks Solutions agreement with TD reflects a deliberate strategy by Canada's largest financial institutions to build genuine expertise in carbon removal procurement rather than making token purchases. As mandatory climate disclosure frameworks require banks to address financed emissions and their own residual operational emissions with increasing rigour, the quality and credibility of carbon removal commitments will face growing scrutiny from investors, regulators and stakeholders. High-integrity, engineered, permanent removal from verifiable Canadian infrastructure addresses these requirements more credibly than nature-based offsets or unverified commitments.

Whether Deep Sky can build out sufficient DAC capacity within its Canadian development programme to fulfil its growing portfolio of offtake commitments from TD Bank, ENGIE, Lufthansa and other partners will be the critical operational test of the next several years. Sustained delivery would establish Deep Sky as a leading Canadian carbon removal infrastructure developer and demonstrate that Canadian DAC can achieve the commercial scale needed to make a meaningful contribution to national and corporate net-zero targets. The convergence of institutional offtake demand, Canadian clean electricity advantages and growing policy support creates conditions in which the development of Canadian direct air capture infrastructure could accelerate significantly over the coming decade.

 

 

Source: Deep Sky