Federal funding backs TerraFixing’s direct air capture technology tailored for cold climates.
Project aims to deliver CO2 removal at below $100 per tonne, scaling to a 1,000-tonnes-per-year unit.
Investment supports Canada’s push to become a clean energy leader while creating regional jobs.
Canada has committed $2.5 million to Ottawa-based TerraFixing to advance its direct air capture (DAC) technology, designed specifically for northern climates. The funding comes from the Energy Innovation Program and was announced by Yasir Naqvi, Parliamentary Secretary to the Minister of International Trade, on behalf of Tim Hodgson, Minister of Energy and Natural Resources.
The project focuses on scaling up CO2 capture beds using structured zeolite packing — a porous mineral that traps carbon from the air. The design minimizes pressure drop and improves mass transport, with the goal of fitting a 1,000-tonnes-per-year DAC unit inside a shipping container. At scale, the company targets capture costs below $100 per tonne.
Minister Tim Hodgson emphasized the dual environmental and economic benefits:
“Canada is ready to lead in building a cleaner, more competitive future. By investing in made-in-Canada clean energy projects, we’re creating good jobs, reducing pollution and positioning our economy to thrive at home and abroad. This is how we protect the environment, grow our economy and deliver real opportunities for Canadians today and for generations to come.”
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Yasir Naqvi highlighted the regional impact, noting that Ontario’s innovators are playing a central role in building out carbon management capacity. “Canada is a world leader in clean technologies, and Ontario’s innovators are driving that leadership forward. In Ottawa, we are advancing world-class carbon management projects that are unlocking new regional economic opportunities in a rapidly growing sector. Today’s investment means more good jobs, greater energy security and long-term prosperity — all while tackling climate change head on,” he said.
For Canada, projects like TerraFixing’s are part of a broader strategy to strengthen energy security, support workers, and position the country as a reliable supplier of low-carbon energy and natural resources.
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