Carbon removal project developer Deep Sky has selected southwestern Manitoba as the location for its next commercial-scale facility, which will have an annual carbon removal capacity of 500,000 tonnes at full scale. Construction of the first phase, capable of removing 30,000 tonnes of CO₂ annually, is scheduled to begin in 2026.
The province was chosen for its favourable geology for underground CO₂ storage, enabled by legislation passed in 2024 to allow carbon sequestration, and for its access to renewable hydroelectric power, which supports low-emission operations.
Deep Sky said it is assessing several potential sites and has begun consultations with municipal, Indigenous, and local stakeholders. Final site selection is expected later this year, allowing drilling to start before the end of 2025.
The company has also entered into a partnership with the Dakota Grand Council, signing a Declaration of Relationship with the Dakota Nations of Manitoba to explore investment and collaboration opportunities.
“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,” said Chairman Raymond Brown of the Dakota Grand Council, Chief Canupawakpa Dakota Nation. “Our long-term economic development strategy is to partner with and invest in sectors that align with our vision of a sustainable Tokata (Future). Deep Sky’s leadership clearly share that vision.”
Alex Petre, Deep Sky’s Chief Executive Officer, said the project aligns with Manitoba’s strengths.
“Southwestern Manitoba perfectly embodies what the carbon removal industry needs to succeed: ideal geology, clean energy, a skilled workforce, and forward-thinking leadership,” Petre said. “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.”
The initial phase of the project represents an investment of more than $200 million, expected to generate construction and operational jobs and business opportunities for local suppliers.
Jamie Moses, Manitoba’s Minister of Business, Mining, Trade and Job Creation, said the initiative underscores the province’s role in industrial innovation.
“Deep Sky’s selection of Manitoba for one of its first commercial carbon removal and storage facilities highlights our province’s commitment to technologies like direct air capture,” he said. “This project reinforces Manitoba’s leadership in reducing global CO₂ emissions while contributing to a modern, advanced economy.”
The Manitoba project follows the launch of Deep Sky Alpha, the company’s first facility in Alberta, which has an annual removal capacity of 3,000 tonnes and hosts multiple direct air capture (DAC) technologies. The data gathered from that site will inform design and technology choices for Deep Sky Manitoba and future large-scale projects, including those planned in Quebec.
Deep Sky’s expansion comes as Canada seeks to strengthen its position in the emerging carbon removal sector, seen as critical to achieving global net-zero emissions. By 2050, the world may need to remove between 6 and 10 billion tonnes of CO₂ annually to meet climate targets.
