Deep Sky has chosen Innisfail, Alta. to host a facility that will test a range of carbon removal technologies toward eventual commercialization, said to be a world first.

Named Deep Sky Labs, the Montreal-headquartered carbon removal project developer aims to test up to 14 direct air capture (DAC) technologies at the site, with an initial eight selected.

The goal is to find an economical, energy efficient, scalable carbon removal method that can be used to remove large quantities of carbon dioxide (CO2) from the air at Deep Sky’s planned network of carbon removal sites. Deep Sky Labs represents Canada’s first commercial DAC project, the company claims.

“We’re in the business of scaling carbon removals, and this first facility represents a giant step forward for the health of our planet and our economy,” Damien Steel, Deep Sky CEO, said in a release.

With operations scheduled to start in February to March 2025, Deep Sky Labs will be able to capture 3,000 tons of (CO2) per year, with the option for expansion.

Deep Sky Labs

Deep Sky Labs will be set on five acres of a clean energy industrial park in Innisfail, a town between Edmonton and Calgary.

Eight DAC technologies from providers such as Airhive, Skyrenu and Mission Zero will be the first to be tested. The trials will look to optimize their performance in the Canadian climate and validate their potential before possible commercial deployment. Deep Sky’s software will track and benchmark the performance.

“We literally want to try before we buy,” Phil De Luna, Deep Sky’s chief carbon scientist and head of engineering, said in an interview with Sustainable Biz Canada.

The optimal technologies will be chosen by Deep Sky for its planned commercial DAC facilities designed to remove hundreds of thousands of tonnes of CO2 per year, with Deep Sky working on the design, project financing and construction.

Once the CO2 is liquefied, it will be trucked to a well in the Meadowbrook Carbon Storage Hub facility in Sturgeon County, north of Edmonton, for long-term storage.

There is room for more DAC companies on concrete pads. Priorities are running at low energy intensity, simplicity, manufacturing and scalability.

Carbon removal credits will be sold from Deep Sky Labs. The company is close to finalizing sales for the first 10 years of credits being produced. Though not ready to announce the buyers yet, De Luna said they are “marquee global brands that are already active in the carbon removal and credit space”, in the technology or banking sectors.

“It's not necessarily to build for profit. We're not profiting. It's so that we can begin and prove out this business model and set a precedent.”

Construction will begin in approximately two weeks, De Luna said. He said the facility took less than a year to go from concept to construction.

Deep Sky is funding the project with its $75-million fundraise and expects to tap into federal and provincial investment tax credits for carbon capture, utilization and storage. The total investment expectation is approximately $110 million over the lab’s lifetime.

Deep Sky Labs will be kept as an innovation centre to test future DAC technologies.

Choosing Innisfail

Despite its roots in Quebec, Deep Sky opted to build its first carbon removal site in Alberta because the province is ahead of Quebec on a subsurface regulatory framework; it already has carbon storage infrastructure; Innisfail’s enthusiastic support for Deep Sky; and the neighbouring clean energy hub which will include a solar energy facility and waste-to-energy site.

A power purchase agreement has been secured with a solar plant in Lethbridge, Alta. to procure clean energy for Deep Sky Labs.

Breaking ground for carbon storage in Quebec

As it was developing Deep Sky Labs, the company inched forward on pre-feasibility studies in Quebec at Becancour and Thetford Mines to analyze the geology for carbon storage.

Deep Sky performed a ground analysis in July at Becancour with Quebec-based Geostack and with scientists at Institut national de la recherche scientifique to determine carbon sequestration potential in underground saline reservoirs. In the Thetford Mines region, a similar examination is being done to determine the possibility for rocks in the area to mineralize CO2 when injected with the greenhouse gas.

If the tests match expectations, carbon removal facilities may be built in Becancour and Thetford Mines.