• Deep Sky delivered North America’s first verified direct air capture carbon removal credits to Microsoft and Royal Bank of Canada.
• The credits were verified by Isometric and linked to the first injection of 14 tons of carbon underground in Alberta.
• The project adds momentum to Canada’s carbon removal sector as demand rises from companies with net-zero and AI-related emissions pressures.

Canada Enters the DAC Credit Market

Deep Sky has delivered North America’s first verified carbon removal credits from direct air capture, giving Canada a new position in the race to scale carbon removal.

The Canadian company announced Monday that it provided direct air capture, or DAC, credits to Microsoft and Royal Bank of Canada. The credits were verified by London-based climate tech certification company Isometric.

The delivery is small in volume but large in market significance. It moves DAC in North America from project development into verified credit delivery. For corporate buyers, that distinction matters.

DAC removes carbon dioxide directly from the air. That makes it different from traditional carbon capture and storage, which traps emissions at industrial sites before they reach the atmosphere. DAC targets emissions that have already entered the air.

Scientists have identified the technology as important for stabilizing the climate. Yet it remains costly, energy intensive and hard to scale. That has left the market with strong buyer demand but limited delivery.

“This shows ⁠Canada is building, is taking the risks, and it puts us on the map for innovation in carbon removal,” said Deep Sky CEO Alex Petre in an interview.

Microsoft and RBC Receive Verified Credits

The credits delivered to Microsoft and RBC stem from Deep Sky’s first underground injection in May. That injection stored 14 tons of carbon dioxide.

Regular injections are continuing. Microsoft and RBC will receive credits quarterly under the arrangement.

The delivery gives both companies access to verified removals at a time when demand for high-quality carbon credits is increasing. Technology companies are under particular scrutiny. Many have made climate commitments while their emissions rise due to fast-growing AI data center demand.

Those pressures have helped drive major purchases of carbon removal and carbon capture credits. Buyers want durable, measurable removals that can withstand investor and regulatory scrutiny.

“People really want this to work, because they continue to sign contracts. However, very few projects have actually been delivered,” said Petre.

That gap between ambition and delivery has become a central issue in the carbon market. Many offtake deals have been signed, but few projects have produced verified removals at meaningful scale.

Deep Sky’s announcement gives buyers a delivered product, not only a future promise. For investors, it also provides an early proof point for DAC infrastructure in Canada.

RELATED ARTICLE: Deep Sky Secures First DAC Offtake Deal with Rubicon Carbon

Alberta Pilot Hub Tests Multiple Technologies

Deep Sky’s Alberta pilot facility began operations last summer. It is expected to capture 3,000 metric tons of CO2 annually.

The site is designed as a test hub for multiple DAC companies. That model allows different technology providers to deploy, operate and refine their systems in one location.

This approach could help reduce execution risk. It also gives buyers and financiers more visibility into which technologies perform under real operating conditions.

The only other company that has generated DAC credits is Climeworks. Its Iceland facility is the world’s largest DAC complex.

Deep Sky’s entry gives the market another supplier in a sector still dominated by a handful of players. It also strengthens Canada’s role in carbon removal, supported by Alberta’s subsurface storage capacity and industrial expertise.

Buyers Signal Long-Term Demand

Deep Sky has also signed carbon credit deals with TD Bank, Lufthansa and France’s Engie. Financial terms have not been disclosed.

The buyer mix points to a broader market. Banks, airlines, energy companies and technology firms are all seeking ways to address residual emissions. For hard-to-abate sectors, durable removals may become a bigger part of long-term climate strategies.

However, DAC is not a substitute for cutting emissions. For boards and sustainability leaders, the central governance question is how removals fit into credible transition plans. Investors will expect buyers to show that credits support, rather than replace, operational decarbonization.

Cost is another challenge. DAC remains expensive compared with many nature-based or avoidance credits. Scaling it will require more capital, clearer policy incentives and continued corporate demand.

Petre said that once Deep Sky’s Alberta test hub is fully established, the company plans to develop a large-scale commercial DAC project in Canada.

For Canada, the delivery places its carbon removal sector into a global market that is still taking shape. For corporate buyers, it offers an early route to verified DAC credits in North America. For investors, it raises a practical question: which carbon removal platforms can move from pilot injections to bankable infrastructure at scale?