SMBC takes strategic stake in carbon-removal developer Deep Sky
What's the deal? Sumitomo Mitsui Banking CorporationDealroom has a profile for this one. Try Dealroom → (SMBC) has taken a strategic stake in Deep Sky, a Montreal-based carbon-removal developer, to speed climate-technology deployment in Japan. Terms were not disclosed. The deal came through SMBC's Social Value Creation Investment Fund.
Deep Sky pulls carbon dioxide from the air for permanent underground storage. Led by chief executive officer Alexandra Petre, it has raised $130 million to date. Backers include Investissement QuébecDealroom has a profile for this one. Try Dealroom →, OMERS VenturesDealroom has a profile for this one. Try Dealroom →, BDC Climate Fund, Breakthrough Energy Catalyst, BMODealroom has a profile for this one. Try Dealroom →, and the National Bank of CanadaDealroom has a profile for this one. Try Dealroom →.
Why now? The investment builds on a memorandum of understanding signed in December 2025. It was finalised in Tokyo during the Team Canada Trade Mission to Japan, alongside Canada's Minister of International Trade, Maninder Sidhu. SMBC wants to help corporate clients buy high-quality, direct air capture (DAC) carbon-removal credits to offset residual emissions, and to connect Japanese buyers with global project developers.
What could go wrong? DAC remains costly and unproven at scale. Building a regional carbon-removal market depends on sustained corporate demand for credits, which is far from guaranteed.
The signal: Now at breakout stage, Deep Sky has assembled a backer list spanning government, pension funds, and corporate strategics — and SMBC's entry adds a Japanese distribution channel to that mix. For a company building infrastructure to scale CO2 removal, securing a corporate partner with direct access to emissions-heavy Japanese buyers matters more than the undisclosed cheque itself.
Read more: Fintech Observer
