Canada Invests in Carbon Capture and Storage in Ottawa

August 11, 2025

Canada is at a pivotal moment in history. Faced with global volatility, disrupted trade relationships and a changing environment, we must strengthen our economy while doing our part to lower greenhouse gas (GHG) emissions.

On August 8, Yasir Naqvi, Member of Parliament for Ottawa Centre and Parliamentary Secretary to the Minister of International Trade and to the Secretary of State (International Development), on behalf of Minister Tim Hodgson, Minister of Energy and Natural Resources, announced an investment of $2.5 million from the Energy Innovation Program (EIP) to support Ottawa-based TerraFixing in developing made-in-Canada carbon management technology.

The project aims to advance direct air capture technology designed for cold climates by scaling up CO₂ capture beds. It uses structured zeolite packing — a porous mineral that traps CO₂ from the air — to minimize pressure drop and improve mass transport of CO₂. The goal is to fit a 1,000-tonnes-per-year unit into a shipping container, achieving costs below $100 per tonne of CO₂ at a large scale.

Projects like these support Canada in becoming a clean energy superpower — demonstrating how energy innovation can enhance energy security and unlock the full potential of our workers, businesses and resources. We are moving quickly to advance our position as a global supplier of secure, reliable and low-carbon energy and natural resources, and build a clean, strong economy.

Quotes

“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.”

The Honourable Tim Hodgson
Minister of Energy and Natural Resources

“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.”

Yasir Navi
Member of Parliament for Ottawa Centre and Parliamentary Secretary to the Minister of International Trade and to the Secretary of State (International Development)

“EIP’s CCUS Capture contribution has been catalytic for TerraFixing. With the funding, we’ve built a state-of-the-art lab, doubled our team and developed a new manufacturing IP that we’re now moving from benchtop to a pilot production line in a warehouse right here in Ottawa. The program’s support is helping us keep innovative technology and IP in Canada, create supply chain independence from the U.S. and stimulate the creation of hundreds of high-skilled jobs on the path of making Canada a global leader in carbon capture, utilization and storage.”

Dr. Vida Gabriel
Co-founder and CEO/COO, TerraFixing Inc.

Quick facts

• As part of Budget 2021, the government is investing $319 million over seven years into research, development and demonstrations (RD&D) to advance the commercial viability of carbon capture, utilization and storage (CCUS) technologies. Natural Resources Canada is delivering on this commitment through the Energy Innovation Program (EIP).
• TerraFixing’s project is funded under the EIP’s Carbon Capture, Utilization and Storage Research, Development and Demonstration (RD&D) call for proposals. The call supports the RD&D of next-generation carbon capture and storage technologies that have the potential to significantly reduce the costs of capturing and storing carbon through three streams:
  • Capture: To drive down the cost and enhance performance of capture technologies for different emission sources.
  • Storage and Transportation: to characterize and develop safe, permanent subsurface CO₂ storage and technologies that support safe and efficient transportation of CO₂ and storage opportunities across Canada.
  • Utilization: RD&D of CO₂ utilization technologies that reduce costs, energy use and carbon intensity while enabling large-scale, long-term CO₂ sequestration. 
• As referenced in Budget 2024, the federal government delivered, on a priority basis, a suite of major economic investment tax credits, representing $93 billion in incentives by 2034–35, to create jobs and keep Canada on track to reduce pollution and reach net zero by 2050. This includes a Carbon Capture, Utilization and Storage Investment Tax Credit.

Source

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