MONTREAL and TOKYO — Deep Sky Corporation today announced a strategic investment from Sumitomo Mitsui Banking Corporation (SMBC) to advance Japan's carbon dioxide removal (CDR) and direct air capture (DAC) sector. The investment, made under SMBC's Social Value Creation Investment Fund, marks the bank's first foray into the CDR/DAC space.
Investment Details and Objectives
Through this investment, SMBC will leverage Deep Sky's expertise in DAC project development, CO2 storage, and high-quality carbon removal credit generation. The partnership aims to support sourcing and use of DAC-based carbon credits while creating collaboration opportunities with project developers and corporate buyers. The terms of the investment were not disclosed.
SMBC aims to strengthen support for customers' decarbonization initiatives and contribute to the growth and commercialization of the CDR/DAC market in Japan.
Strategic Importance for Japan
“Through our partnership with Deep Sky, we seek to gain insights into market developments, technology deployment, and the evolving landscape of carbon credit generation in the carbon removal sector,” said Kenji Irie, Executive Officer and General Manager, Sustainability Planning Department at SMBC. “This investment represents an important opportunity for SMBC to leverage these learnings to further enhance our support to the carbon removal ecosystem in the future.”
CDR is increasingly important for addressing residual emissions that remain after maximum deployment of renewable energy and energy efficiency measures. Durable carbon removal solutions, including DAC paired with long-term storage, are intended to address these residual emissions.
Canada-Japan Collaboration
“SMBC's partnership with Deep Sky reflects the serious momentum building around durable carbon removal in Asia and the opportunity to strengthen the Japan-Canada carbon removal corridor,” said Alexandra Petre, CEO at Deep Sky. “Japan is a critical market for DAC. Demand is real, the policy environment is maturing and the opportunity to build lasting market infrastructure is here. This investment sets a standard for how leading financial institutions can play a foundational role in scaling high-integrity carbon removal globally.”
The agreement was signed in Tokyo alongside the Honourable Maninder Sidhu, Canada's Minister of International Trade, as part of the Team Canada Trade Mission to Japan, highlighting the growing strategic importance of Canada-Japan collaboration in clean technology, carbon removal, and sustainable economic growth.
“Canada and Japan are trusted partners in building the industries that will support the global transition to net zero,” said Sidhu. “The collaboration between Deep Sky and SMBC highlights how Canadian companies are developing and scaling world-leading carbon removal solutions while creating new opportunities for international investment and commercial growth. Investments like this help strengthen commercial ties between Canada and Japan while supporting the growth of innovative climate solutions developed in Canada and deployed globally.”
