Carbon capture startup Deep Sky said that it plans to build a commercial carbon removal facility in southwestern Manitoba.

The Montreal-based company said Oct. 9 that final site selection is expected this fall with construction of the facility to begin next year.

The first phase of the project, representing at least a $200 million investment, could remove 30,000 tonnes of carbon dioxide directly from the air per year, it said. 

At full scale, the plan is for a facility with annual removal capacity of 500,000 tonnes.

Deep Sky recently began operations of its first facility in Alberta, testing various technologies with an annual capacity of 3,000 tonnes. 

The company says Manitoba’s ideal geology, clean energy and welcoming legislation helped make it the choice for expanded operations.

“What Deep Sky is building in Manitoba isn’t just one of the world’s largest carbon removal facilities, it’s the foundation of an industry that will reshape our economy and our planet,” said chief executive Alex Petre in a statement.

The province passed legislation last year to allow for carbon dioxide storage, with regulations expected to be passed this fall, the company said. 

Manitoba Premier Wab Kinew said the regulatory framework will allow companies to establish in the province and tap into federal tax credits to grow the industry.

“Technology is going to be part of the fight against global warming,” said Kinew, speaking to reporters in Winnipeg on Thursday.

“And if we can create some good jobs and economic opportunity here, at the same time that we are exploring a new technology that might help us in the fight to save the environment … I think we should do that.” 

This report by The Canadian Press was first published Oct. 9, 2025.