SMBC Invests in Deep Sky to Strengthen Partnership for Carbon Dioxide Removal Market Development in Japan

Deep Sky Corporation today announced a strategic investment from Sumitomo Mitsui Banking Corporation (SMBC), supporting the advancement of Japan's carbon dioxide removal (CDR) and direct air capture (DAC) sector. The investment was made under SMBC's Social Value Creation Investment Fund and marks the bank's first investment in the CDR/DAC sector.

SMBC Invests in Deep Sky to Strengthen Partnership for CDR/DAC Market Development in Japan

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Through this investment, SMBC will leverage Deep Sky's expertise in DAC project development, CO2 storage, and the generation of high-quality carbon removal credits to support the sourcing and use of DAC-based carbon credits, while also creating opportunities for collaboration with project developers and corporate buyers. Through these efforts, SMBC aims to strengthen support for its customers' decarbonization initiatives and contribute to the growth and commercialization of the CDR/DAC market in Japan. The terms of the investment were not disclosed.

"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. 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," said Kenji Irie, Executive Officer and General Manager, Sustainability Planning Department at SMBC.

In response to climate change, CDR is becoming increasingly important as a means of addressing residual emissions that remain even after the 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.

"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. 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," said Alexandra Petre, CEO at Deep Sky. "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. 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," said the Honourable Maninder Sidhu, Minister of International Trade.

The investment builds on the strategic partnership established by SMBC and Deep Sky under a memorandum of understanding signed on Dec. 3, 2025. The partnership is focused on creating demand for DAC-based carbon removal credits, exploring commercial opportunities with Japanese companies and contributing to the market conditions needed for durable carbon removal to scale in Japan.

About Deep Sky

Montreal-based Deep Sky is the world's first tech-agnostic carbon removal project developer aiming to remove gigatons of carbon from the atmosphere and permanently store it underground. As a project developer, Deep Sky brings together the most promising direct air and ocean carbon capture companies under one roof to bring the largest supply of high quality carbon credits to the market, commercializing and catalyzing carbon removal and storage solutions like never before. With $130M in funding, Deep Sky is backed by world class investors including Investissement Québec, Brightspark Ventures, Whitecap Venture Partners, OMERS Ventures, BDC Climate Fund, Breakthrough Energy Catalyst, BMO, National Bank of Canada, and more. www.deepskyclimate.com

SOURCE Deep Sky Corporation