Breakthrough Energy, the clean-tech venture firm founded by Bill Gates, has committed $40 million to Deep Sky Corp., a Montreal-based carbon-capture startup, to accelerate large-scale carbon removal from the atmosphere. The funds, provided through Breakthrough Energy’s Catalyst programme, will support the construction of Deep Sky’s first plant in Innisfail, Alberta, scheduled to begin operations in 2025.
The facility, requiring over CAD 100 million ($70 million) in investment, will test and refine carbon removal technologies, focusing on scaling solutions that can significantly reduce greenhouse gases. Deep Sky, founded by Frederic Lalonde, CEO of Hopper Inc., aims to deliver millions of tons of CO₂ removal annually, with future storage projects also planned in Quebec.
Deep Sky recently announced carbon credit sales to Microsoft Corp. and Royal Bank of Canada, though financial details remain undisclosed. To date, the company has raised over CAD 130 million, including investments from institutions such as Bank of Montreal, National Bank of Canada, and the Quebec government. It has also partnered with direct-air capture companies like London-based Mission Zero Technologies Ltd. to test innovative methods.
“The world will ultimately need many approaches to carbon removal at prices far lower than is achievable today. Deep Sky’s platform will enable and accelerate the kind of real-world innovation that could make affordable direct air capture achievable,” said Mario Fernandez, head of Breakthrough Energy’s Catalyst programme.
The global carbon removal industry is nascent but critical, with fewer than 30 direct air capture plants commissioned worldwide as of last year, according to the International Energy Agency. Current removal technologies remain costly, ranging from hundreds to thousands of dollars per ton of CO₂. Deep Sky’s efforts aim to bring these costs down and advance scalable solutions. Deep Sky’s Alberta plant represents a key step in addressing the billions of tons of carbon dioxide that must be removed from the atmosphere to mitigate climate change. By leveraging grants and partnerships, the company seeks to accelerate the development of efficient, large-scale carbon removal technologies.
