Full Breakdown
Deep Sky Delivers North America’s First Verified Direct-Air-Capture Carbon Credits to Microsoft and RBC
7/1/2026, 11:22:32 AM
Milestone Delivery of Certified DAC Credits
Canadian carbon-removal developer Deep Sky announced that its Alpha plant near Innisfail, Alberta, has generated the continent’s first verified direct-air-capture (DAC) carbon credits. The credits, each representing one metric ton of CO2 permanently removed, were issued to Microsoft and the Royal Bank of Canada (RBC) under long-term offtake agreements running through 2034. The inaugural injection stored 14 tons of atmospheric CO2 underground, and the parties will receive credits on a quarterly basis. The credits were verified by the independent registry Isometric under its DAC Protocol and carry the Core Carbon Principles label.
Background & Context
DAC extracts CO2 directly from ambient air, unlike conventional carbon capture that treats emissions at point sources. The International Energy Agency notes more than 30 DAC plants worldwide, collectively removing roughly 0.01 Mt CO2 yr?¹—far below the >60 Mt yr?¹ the IEA’s Net-Zero pathway calls for by 2030. Costs remain a barrier, ranging from $500 to $1,000 per ton, though tax incentives such as the U.S. 45Q credit and Canada’s investment tax credits aim to lower expenses. Over the past three years, corporations—including Microsoft, Google, Stripe, and JPMorgan Chase—have signed purchase agreements worth hundreds of millions of dollars, but most contracts target future deliveries that have yet to materialize.
Key Figures & Groups
- Alex Petre, CEO, Deep Sky – leads the technology-agnostic developer.
- Brian Hong, Director, RBC – articulates the bank’s climate-strategy alignment.
- Microsoft – corporate buyer seeking verified removals for net-zero commitments.
- Isometric, led by CEO Eamon Jubbawy – independent verifier and issuer of the credits.
- Additional offtakers: TD Bank Group, Lufthansa Group, ENGIE, Sumitomo Mitsui Banking Corporation.
Data & Statistics
- First underground injection: 14 tons CO2.
- Deep Sky Alpha’s design capacity: ? 3,000 t CO2 yr?¹.
- Initial offtake: 10,000 t CO2, with options up to 1 million t.
- Global DAC fleet removes ~0.01 Mt CO2 yr?¹; IEA target >60 Mt yr?¹ by 2030.
- Current DAC cost: $500–$1,000 / t CO2.
Why It Matters
The delivery converts DAC from a research-phase concept to a market-ready supply of verified removals, giving corporate buyers tangible climate-action assets. It also showcases Canada’s competitive advantages—abundant renewable electricity, suitable geology for permanent storage, and a skilled energy workforce—positioning the country to become a major exporter of durable carbon-removal credits.
Official Statements & Responses
Deep Sky’s leadership emphasized that the milestone proves Canada’s capacity to innovate and scale carbon-removal technologies, while underscoring the scarcity of completed projects. RBC’s director highlighted the alignment of the purchase with the bank’s climate strategy, noting the scientific measurability and scalability of the solution. Isometric’s certification process, which accounts for all project emissions and mandates long-term monitoring, was cited as a confidence-building mechanism for buyers.
Criticism & Opposition
Industry observers point to the high unit cost of DAC and the limited volume of verified credits as persistent obstacles. The gap between ambitious purchase agreements and actual deliveries raises concerns that the market may over-promise relative to current supply. Critics argue that DAC should complement, not replace, aggressive emissions-reduction efforts, and that robust policy frameworks are needed to sustain scaling.
What’s Next
Deep Sky plans to expand its test hub into a commercial-scale network of roughly 100 facilities across Canada, targeting capture capacities of up to 1 Mt CO2 yr?¹ per site. Quarterly credit deliveries to Microsoft and RBC will continue, while the company pursues additional contracts with banks, airlines, and energy firms. Successful scaling could cement Canada’s role as a leading supplier of permanent carbon-removal credits.
Verbatim Quotes
- “This shows Canada is building, is taking the risks, and it puts us on the map for innovation in carbon removal… People really want this to work because they continue to sign contracts. However, very few projects have actually been delivered.” — Alex Petre, CEO, Deep Sky
- “This is exactly the kind of action our climate strategy is designed to advance: climate solutions that are scientifically measurable with the potential to scale. Deep Sky has moved with remarkable speed to bring this project to life, and the fact that it’s happening in Alberta—a region central to Canada’s energy future—makes it even more meaningful.” — Brian Hong, Director, RBC
- “We’ve been transparent about the steps required to build this industry and have shared our progress every step of the way – from breaking ground at Deep Sky Alpha to operating multiple distinct DAC technologies, to permanently storing carbon underground. Today, we’re adding another proof point before ongoing commercial operations: North America’s first certified DAC carbon removal credits.” — Alex Petre, CEO, Deep Sky
- “This shows Canada is building, is taking the risks, and it puts us on the map for innovation in carbon removal,” — Alex Petre, CEO, Deep Sky (interview)
- “People really want this to work, because they continue to sign contracts. However, very few projects have actually been delivered,” — Alex Petre, CEO, Deep Sky (interview)
