Deep Sky has announced a ten-year offtake agreement with TD Bank Group, under which the financial institution will purchase more than 18,000 verified Direct Air Capture (DAC) carbon dioxide removal credits.
The financial terms of the decade-long contract have not been disclosed. The transaction represents a significant corporate commitment to engineered carbon removal infrastructure located within Canada.
TD Bank Group has reported a 29 per cent reduction in its Scope 1 and Scope 2 greenhouse gas emissions against its 2019 baseline. Whilst the bank maintains a policy of prioritizing direct emissions reductions, it plans to use engineered carbon dioxide removal technologies to address its long-term residual emissions.
The contract ensures a stable, ten-year supply of Canadian-produced, permanent carbon removals that will be verified on a third-party registry.
Nicole Vadori, Vice President of Global Sustainability at TD Bank, stated that the agreement aligns with the financial group’s strategy to reduce emissions first and neutralise remaining volumes using high-quality solutions, noting that Deep Sky’s diversified DAC technologies support broader clean technology innovation in North America.
Deep Sky operates as a carbon removal project developer, aggregating various DAC technologies to scale permanent sequestration infrastructure.
Charlie Renzoni, Vice President of Carbon Markets at Deep Sky, described the agreement as a case study for enterprise carbon removal procurement, demonstrating that large-scale removal infrastructure can be established domestically.
Representatives from both organisations are scheduled to discuss the structural details of the partnership at a Toronto Climate Week flagship event, hosted by the Lawson Climate Institute at the University of Toronto in collaboration with MaRS and TD.
Susan Thompson, Managing Director and Head of Global Sustainable Finance and Advisory at TD Securities, added that working with innovative providers helps build out critical infrastructure, whilst positioning the firm to advise corporate clients on integrating high-integrity carbon removal into their own decarbonisation strategies.
