TerraFixing’s systems use structured zeolite packing to trap carbon dioxide molecules and target costs below $100 per ton at scale.
The Canadian government announced $2.5 million in funding for Ottawa company TerraFixing to develop technology that pulls carbon dioxide straight out of the air. The investment supports technology designed for cold winters, potentially creating hundreds of jobs in the North while fighting climate change.
This investment comes from Canada’s Energy Innovation Program. Yasir Naqvi, Member of Parliament for Ottawa Centre, made the announcement on behalf of Energy and Natural Resources Minister Tim Hodgson on August 8, 2025.
TerraFixing uses direct air capture technology, which works like a giant vacuum for greenhouse gases. The system pulls air through structured zeolite packing – a porous mineral material with tiny holes that trap carbon dioxide molecules.
The company wants to fit a system that captures 1,000 tons of carbon dioxide per year into a standard shipping container. One container could offset the emissions of roughly 67 average Canadians, who each produce about 15 tons of carbon dioxide annually.
TerraFixing aims to capture carbon dioxide for less than $100 per ton on a large scale. Current direct air capture technologies often cost several hundred dollars per ton. The global carbon capture market is expected to reach $8.2 billion by 2030, growing at 13.1% annually from 2023 levels.
Direct air capture removes carbon dioxide already in the atmosphere, not just preventing new emissions. It acts like a cleanup crew for past pollution, changing how Canadians think about their carbon footprint.
TerraFixing has doubled its workforce with this funding and built a state-of-the-art laboratory in Ottawa. The company moved from small-scale testing to pilot production in a local warehouse.
The investment fits Canada’s plan to become a clean energy superpower. The country positions itself as a global supplier of secure, reliable, and low-carbon energy and natural resources.
Canada allocated $319 million over seven years for carbon capture, utilization, and storage technology research as part of Budget 2021. Natural Resources Canada distributes this money through the Energy Innovation Program.
The government created massive tax incentives for clean technology development. Budget 2024 delivered $93 billion in investment tax credits by 2034-35, including specific credits for carbon capture, utilization, and storage projects.
Canada’s carbon capture strategy focuses on three areas. The capture stream drives down costs and improves the performance of technologies that remove carbon dioxide from various sources. TerraFixing’s work falls into this category.
The storage and transportation stream works on safely storing captured carbon dioxide underground and developing efficient transportation methods. The utilization stream explores turning captured carbon dioxide into construction materials, chemicals, or fuels.
“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,” said Tim Hodgson
Minister of Energy and Natural Resources
TerraFixing’s success could inspire similar companies across Canada. Government funding, tax incentives, and growing market demand create favorable conditions for clean technology startups.
See also: Direct Air Carbon Capture Technology Market Soars to $11 Billion
The company’s focus on cold climate operation provides a unique advantage. Many existing direct air capture systems struggle in freezing temperatures, but Canadian winters won’t affect TerraFixing’s machines.
As the technology scales up, costs should fall further. This makes direct air capture more accessible to businesses and governments worldwide. Canada could become a major exporter of both the technology and carbon removal services.
Laboratory to commercial deployment typically takes several years, but TerraFixing’s progress suggests a shorter timeline. Their move from benchtop testing to pilot production represents a significant milestone.
TerraFixing’s project received funding under the capture stream. The company developed new manufacturing intellectual property and built specialized laboratory facilities in Ottawa.
The structured zeolite packing technology minimizes pressure drop and improves mass transport of carbon dioxide. This design efficiency helps achieve the goal of fitting 1,000 tons per year of capacity into a shipping container.
Dr. Gabriel said the Energy Innovation Program funding proved catalytic for TerraFixing. The company built a state-of-the-art lab, doubled its team and developed new manufacturing intellectual property.
TerraFixing now moves from benchtop research to pilot production in Ottawa warehouse space. The program helps keep innovative technology and intellectual property in Canada while creating supply chain independence.
The company expects to create hundreds of high-skilled jobs as it scales up operations. This contributes to making Canada a global leader in carbon capture, utilization and storage technology.
Market analysts project the carbon capture sector will attract $175 billion in investment globally by 2030. North America accounts for 45% of current market share, with Canada positioned to capture significant portions through companies like TerraFixing.
Canada’s carbon capture investment represents more than environmental policy. It’s an economic strategy to create jobs, reduce pollution, and position the country as a clean technology leader. For Canadians, this means cleaner air, more job opportunities, and a stronger global economic position.
