TerraFixing Inc, a Canadian direct air capture (DAC) startup, has entered into a CAD 10 million (USD 7.3 million) commercial agreement with Tugliq Énergie Co., a Canadian energy solutions provider, to develop two carbon capture units for use in northern Canada.

The partnership will accelerate the development and deployment of TerraFixing’s DAC units, specifically the 1,000- and 4,000-ton-per-year models, which operate optimally in cold, windy weather. The 1,000-ton-per-year model already has the support of the local community and a variety of funding partners to support CO2 removal and will be deployed in Fermont, Canada.

Analyst QuickTake: The commercial agreement was announced on the heels of a CAD 1.6 million (USD 1.2 million) seed financing round closed on May 1, co-led by Mr. Laurent Abbatiello and Dr. Pierre Rivard, founders of Tugliq. The funds raised, and the proceeds from commercial agreements will drive the development of the 1,000- and 4,000-ton-per-year models. In addition, the funds will support the expansion of the TerraFixing team and facilitate the establishment of a new R&D laboratory space at the University of Ottawa.