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Sumitomo Mitsui Banking Corporation has made a strategic investment in Montreal-based carbon removal developer Deep Sky Corporation to accelerate direct air capture technology deployment in Japan. Financial terms were not disclosed. Deep Sky, led by CEO Alexandra Petre, operates as a tech-agnostic project developer extracting atmospheric carbon dioxide for permanent underground storage. The company has raised $130 million to date from investors including Investissement Québec, Brightspark Ventures, OMERS Ventures, Breakthrough Energy Catalyst and BMO. The investment was executed through SMBC's Social Value Creation Investment Fund and builds upon a memorandum of understanding signed in December 2025. SMBC aims to help Japanese corporate clients secure high-quality carbon removal credits and build commercial infrastructure connecting buyers with global project developers. The agreement was finalised in Tokyo during Canada's Team Canada Trade Mission to Japan.

Montréal's Deep Sky partners with French energy company ENGIE. Under the partnership, ENGIE will purchase carbon removal credits, collaborate on research and development. A Montréal-based carbon removal company with a significant footprint in Alberta announced today a strategic partnership with French energy multinational ENGIE. Deep Sky develops large-scale, direct-air carbon removal and storage projects, including its first flagship facility, Deep Sky Alpha, in Innisfail, Alta., just south of Red Deer, which was backed by funding from Bill Gates' climate fund. Direct air capture (DAC) technology uses various methods to extract carbon directly from ambient air. Deep Sky describes itself as "technologically agnostic," meaning its DAC facilities deploy, test, and scale multiple methods to achieve carbon removal, typically through partnerships with capture-technology providers. ENGIE, based in the Paris metropolitan area, is a global energy utility involved in producing electricity as well as managing infrastructure that supports the delivery of that energy. The company has been forthright about its interest in transitioning to more sustainable energy sources and in reducing emissions. "Partnerships like this help ensure direct air capture can meet growing market demand." Charlie Renzoni, Deep Sky Under the agreement, ENGIE will purchase up to 15,000 carbon removal credits from Deep Sky, with those credits being generated at facilities like Deep Sky Alpha. The company was unable to disclose the market value of that purchase. The two companies will also collaborate on research and market development around direct air capture, seeking to inform future commercial-scale DAC deployments. In a statement released today, Deep Sky said that the partnership supports ENGIE's efforts toward decarbonization, while also contributing to growth within the broader carbon removal economy. "ENGIE, with its commitment to net zero by 2045, aligns with the urgency of climate timelines outlined by the [Intergovernmental Panel on Climate Change] and reflects the kind of leadership needed to scale the carbon removal market," said Charlie Renzoni, vice president of carbon markets at Deep Sky, in a statement released this morning. "Partnerships like this help ensure direct air capture can meet growing market demand by bridging the gap between innovation and industrial-scale deployment." BetaKit's Prairies reporting is funded in part by YEGAF, a not-for-profit dedicated to amplifying business stories in Alberta. Feature image courtesy of Deep Sky