The frigid morning air at the Boundary Dam Power Station in Saskatchewan carries more than just coal dust these days. It transports something invisible yet revolutionary: captured carbon dioxide that once would have escaped into the atmosphere. This facility, operated by SaskPower, represents the vanguard of a rapidly emerging Canadian industry that’s transforming environmental responsibility into economic opportunity.
“We’re not just preventing emissions anymore—we’re monetizing them,” explains Dr. Emily Chen, climate technology researcher at the University of British Columbia. “Canadian companies have recognized that carbon isn’t just a liability; with the right technology, it’s becoming a valuable resource.”
Carbon capture, utilization, and storage (CCUS) technologies have evolved from experimental concepts to commercial realities across Canada, with investments exceeding $3.8 billion in 2023 alone. The federal government’s introduction of carbon tax incentives and a $5 billion investment pool for clean technologies has accelerated this transition, creating what industry insiders call a “carbon gold rush.”
Calgary-based Carbon Engineering stands at the forefront of this movement with its direct air capture technology that pulls CO₂ directly from the atmosphere. The company recently secured a landmark $1.1 billion partnership with Occidental Petroleum to build the world’s largest direct air capture facility, with Canadian engineering expertise at its core.
“We’ve moved beyond the question of whether carbon capture works to how quickly we can scale it,” says Michael Robertson, Carbon Engineering’s operations director. “Our Squamish pilot facility is capturing a thousand tonnes of CO₂ annually, but our commercial plants will capture a million tonnes each—equivalent to the work of 40 million trees.”
What distinguishes the Canadian approach is its focus on utilization, not just storage. In Edmonton, Carbonova Corp has developed processes that transform captured carbon into carbon nanofibers—materials worth up to $100,000 per tonne that strengthen everything from concrete to batteries.
“We’re creating circular carbon economies,” notes Carbonova CEO Mina Zarabian. “The same emissions that were once considered waste are now feedstock for high-value products that outperform traditional materials.”
The economics are increasingly compelling. With carbon prices set to rise to $170 per tonne by 2030, industrial emitters face growing financial pressure. Companies like Nova Chemicals are partnering with carbon capture specialists not just for environmental compliance but for competitive advantage.
The sector is attracting significant venture capital, with Toronto-based CCUS startup Carbon Upcycling closing a $38 million Series A funding round last quarter. Their technology converts industrial carbon emissions into additives that enhance concrete performance while permanently sequestering CO₂.
“International investors are recognizing that Canada has unique advantages in this space,” explains Jennifer Martinez, sustainable investment analyst at RBC Capital Markets. “Our geology is ideal for storage, our energy expertise is world-class, and our regulatory framework is evolving to support innovation.”
Not all efforts focus on heavy industry. Montreal’s Carbicrete has eliminated cement from concrete production entirely, instead using steel slag waste and captured CO₂ to create building materials that are carbon-negative—meaning they permanently store more carbon than they emit during production.
“We’re building infrastructure that actively removes carbon from the atmosphere,” says Carbicrete CEO Chris Stern. “Each standard building block sequesters about 2 kg of CO₂, turning our built environment into a massive carbon sink.”
The Indigenous-led First Nations Major Projects Coalition has also entered the space, developing Canada’s first Indigenous-owned carbon capture facility near Fort McMurray. The project aims to demonstrate how traditional land stewardship values align with cutting-edge climate technology.
Despite the momentum, challenges remain. Infrastructure gaps, particularly pipeline networks to transport captured CO₂, require billions in additional investment. Critics also question whether carbon capture enables continued fossil fuel dependence rather than transition to renewables.
However, proponents argue that even in net-zero scenarios, certain industries like cement and steel manufacturing will continue to generate emissions that require capture technologies.
As global climate targets tighten and carbon markets mature, Canadian companies are positioning themselves as solution providers in an emissions-constrained world. With projected global market growth from $7 billion today to over $50 billion by 2030, the business of capturing carbon is proving that environmental innovation and economic growth can flow together—much like the captured carbon now moving through the pipelines of Canada’s new circular economy.
For more on how Canadian businesses are adapting to climate challenges, visit CO24 Business for our ongoing coverage of sustainable innovation.
