Deep Sky to Build Carbon Removal Facility in Manitoba
Deep Sky to Build One of World's Largest Carbon Removal Facility in Manitoba

Industry News

Deep Sky to Build One of World's Largest Carbon Removal Facility in Manitoba

Updated on Oct 10, 2025, 05:36 PM IST
Written & Edited by Parvathy S

Deep Sky, the world's first tech-agnostic carbon removal project developer, has selected Manitoba as the location for its next commercial carbon removal facility, Deep Sky Manitoba. The facility will be built in Southwestern Manitoba with an annual removal capacity of 500,000 tonnes at full scale, making it one of the world's largest carbon removal facilities.

The facility will be constructed in multiple phases, with the first 30,000 tonnes of removal capacity set to begin construction in 2026. The first phase alone represents over USD 200 million in investment, while the overall facility is expected to bring an estimated USD 500 million investment to the region.

Strategic Location and Infrastructure Advantages

Southwestern Manitoba was selected due to several key factors that make it ideal for carbon removal operations. The region offers suitable geology for storing CO2 underground safely and effectively. The Government of Manitoba passed legislation in 2024 to allow for CO2 storage, with specific regulations anticipated to be passed this fall. Manitoba's clean hydroelectric grid provides abundant renewable energy, which is essential for powering technology to pull CO2 from the atmosphere without creating additional emissions in the process.

Deep Sky is currently evaluating several potential sites capable of hosting a single project and has begun engaging with municipal, Indigenous, and other local stakeholders in the region. Final site selection is anticipated to occur this fall, enabling drilling of the storage well by the end of this year, with construction of the facility beginning in 2026.

Indigenous Partnership and Community Engagement

Deep Sky has secured the support of the Dakota Grand Council by collaborating with the Dakota Nations of Manitoba and has signed a Declaration of Relationship to explore investment and other partnership opportunities. Chairman Raymond Brown of the Dakota Grand Council and Chief of Canupawakpa Dakota Nation stated, “On behalf of the Dakota Grand Council and our Dakota Oyate, including our Tribal Partners in the US, we are proud to announce our partnership with Deep Sky.

Our Dakota long term economic development strategy is to partner with and invest in sectors that align with our vision of a sustainable 'TOKAHA' (Future). Deep Sky leadership clearly shares that vision, along with some of North America's largest and most innovative companies.” These engagements are described as a critical part of the site selection process, and Deep Sky is committed to working collaboratively with Indigenous peoples and local communities to ensure support for projects.

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Economic Impact and Government Support

Deep Sky Manitoba will bring significant economic opportunity to southwestern Manitoba. The project will create construction and operational jobs, opportunities for local businesses and suppliers, and indirect jobs and economic opportunities as a result of the overall investment. Jamie Moses, Minister of Business, Mining, Trade, and Job Creation, commented,

“Manitoba is proud to be advancing a new frontier in industrial innovation, one that strengthens our position as a global leader in climate action. Deep Sky's selection of Manitoba for one of its first commercial carbon removal and storage facilities highlights our province's commitment to cutting-edge technologies like direct air capture. This project not only reinforces Manitoba's leadership in reducing global CO2 emissions, but also contributes to building a modern, advanced economy and places our province among a select few jurisdictions worldwide with the capacity to host such transformative infrastructure.”

Technology Foundation and Company Background

This announcement follows Deep Sky's recent launch of operations at its first facility in Alberta, Deep Sky Alpha. Deep Sky Alpha has an annual removal capacity of 3,000 tonnes and is described as the world's first technology-agnostic Direct Air Capture (DAC) facility, hosting up to ten different DAC technologies in one location. This approach provides crucial performance data to inform technology selection for Deep Sky Manitoba, significantly reducing deployment and technological risks for the larger facilities to follow.

Alex Petre, Deep Sky CEO, stated, “Southwestern Manitoba perfectly embodies what the carbon removal industry needs to succeed: ideal geology, clean energy, a skilled workforce, and forward-thinking leadership. What Deep Sky is building in Manitoba isn't just one of the world's largest carbon removal facilities; it's the foundation of an industry that will reshape our economy and our planet. Canada has the opportunity to become the carbon removal capital of the world, and capture the jobs and economic opportunity that will come with it.”

Deep Sky Manitoba is part of a portfolio of large-scale projects under development, including those in Quebec. The Montreal-based company aims to remove gigatons of carbon from the atmosphere and permanently store it underground. As a project developer, Deep Sky unites the most promising direct air and ocean carbon capture companies under one roof to provide the largest supply of high-quality carbon credits to the market.

The company has secured USD 130 million in funding and is backed by world-class investors, including Investissement Québec, Brightspark Ventures, Whitecap Venture Partners, OMERS Ventures, BDC Climate Fund, Breakthrough Energy Catalyst, BMO, National Bank of Canada, and others. This announcement further strengthens Canada's leadership in carbon removal technology, an industry with the potential to grow into a multi-trillion-dollar global market in the coming decades.

As countries and companies worldwide seek solutions to meet their net-zero commitments, facilities like Deep Sky Manitoba and future Canada-based facilities will play a crucial role in removing the massive amounts of CO2 estimated at between 6-10 billion tonnes annually by 2050 that will be required to mitigate the worst impacts of climate change.

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