Venture Capital: Canadian Carbon Capture Startup Deep Sky Collects $55M Funding

“Trees are not enough.” – Frederic Lalonde, Founder, Deep Sky Corp.

Deep Sky Corp., a Canadian startup founded by Frederic Lalonde, CEO of Hopper Inc., has secured $55 million in funding from venture capital firms and government entities to establish a carbon-capture plant in Quebec. Lalonde, known for Hopper, one of Canada’s top tech startups, initiated Deep Sky with the goal of removing millions of tons of emissions from the atmosphere and oceans. The funding comes from investors like Whitecap Venture Partners, BrightSpark Ventures, and government support from both Canada and Quebec.

Deep Sky has partnered with Mission Zero Technologies Ltd. to test its technology, focusing on direct-air capture. Lalonde emphasized the necessity for solutions beyond tree planting, stating, “Even trees are not enough.” Deep Sky aims to initially extract around 300,000 tons of carbon dioxide annually from air and water in Quebec. The newly acquired capital will facilitate the selection and testing of processes, paving the way for the plant’s first phase. [AJOT (American Journal Of Transportation)]

However, the project faces challenges, including an estimated C$500 million ($365 million) required for full-scale development and addressing the 100 megawatts of electricity required to operate the facility. Lalonde believes the energy consumption can be optimized to align with demand fluctuations.

BloombergNEF notes increasing demand for direct-air capture offsets, with companies like Microsoft (NASDAQ: MSFT) and Shopify (NYSE: SHOP) seeking sustainable options.

According to Lalonde, it is necessary to install 20 billion tons per year of carbon removal capacity by mid-century to combat climate change effectively.

Related Story:  EDAC Labs Raises $3M Seed For Direct Air Capture Of CO2

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