Terrafixing DAC Initiatives for 2025: Key Projects, Strategies and Partnerships

TerraFixing: From Niche Concept to Commercial Deployment in Cold-Climate DAC

TerraFixing is strategically positioning itself as a leader in Direct Air Capture (DAC) by developing technology uniquely suited for cold climates. By leveraging a zeolite-based adsorption process, the company aims to overcome the operational barriers that hinder conventional DAC systems in sub-zero temperatures. An analysis of its activities from 2021 through today reveals a clear trajectory from technology development to commercial validation and strategic expansion, underscored by key partnerships and a growing investor base dedicated to carbon removal. This evolution highlights a critical shift in the DAC market, where specialized solutions are moving from pilot stages to tangible, large-scale projects.

Industry Adoption: A Shift from Concept to Commercial Contracts

Between 2021 and 2024, TerraFixing’s industry adoption was characterized by foundational steps to prove its cold-climate DAC concept. The company secured a pivotal $10 million CAD commercial agreement with Tugliq Énergie Co. in May 2024 to develop two carbon capture units, including a 1,000-tonne-per-year facility in Fermont, Quebec. This agreement marked a significant inflection point, transitioning the company from R&D to its first major commercial application. Support from organizations like the MakerLaunch accelerator at uOttawa and early carbon credit purchases from Klarna and MaRS Discovery District provided crucial validation and initial funding, demonstrating early belief in the technology’s potential.

From January 2025 onward, the pattern of adoption matured from a single anchor project to a broader, ecosystem-building strategy. The company solidified its value proposition by attracting a diverse range of partners, including the US-based non-profit Terraset, the carbon removal platform Milkywire, and the climate tech accelerator Launch Alaska. This diversification from a single energy partner to a portfolio of innovation hubs, investors, and deployment specialists indicates that TerraFixing’s technology is now viewed as a viable solution ready for broader market entry. The partnership with Launch Alaska, specifically focused on deploying the technology in Alaska, represents a new opportunity for geographic expansion into another key cold-climate region. This shift from securing a first customer to building a pipeline of projects and funding sources signals that the broader carbon removal industry is beginning to recognize and invest in specialized, region-specific DAC solutions.

Investment: Building Financial Momentum for Scale

TerraFixing’s investment journey illustrates a clear progression from early-stage, grant-like support to significant, growth-oriented funding from dedicated carbon removal financiers. Initially, the company benefited from inclusion in programs like Klarna’s internal carbon tax fund and MaRS’s pre-purchase of carbon credits, which provided vital early-stage capital and third-party validation. A notable $1.6 million investment in May 2024 was specifically earmarked for developing its technology in Canada’s North. However, 2025 marked a significant acceleration. The seven-figure investment from Terraset and credit purchases from Milkywire represent a new class of funding from organizations whose core mission is to scale durable carbon removal. This financial backing is not just for R&D but for the deployment and scaling of a technology that has already demonstrated a functional prototype, signaling heightened investor confidence in TerraFixing’s commercial roadmap.

Table: TerraFixing Investment and Funding (2023-2025)

Partnerships: Forging a Path to Deployment

TerraFixing’s partnerships reveal a deliberate strategy, evolving from foundational academic and accelerator collaborations to high-stakes commercial and deployment agreements. The 2021-2024 period was defined by building a base, highlighted by joining the MakerLaunch accelerator at uOttawa and culminating in the cornerstone $10 million CAD commercial agreement with Tugliq Énergie for the Fermont project. This partnership was a critical de-risking event, providing a clear path to a first-of-a-kind commercial plant.

In 2025, the partnership strategy expanded in scope and geography. The collaboration with Launch Alaska moves TerraFixing beyond its Canadian home base and into the strategic US market of Alaska, a region with ideal climate conditions for its technology. Reinforcing its Canadian roots, the ongoing partnership with MaRS provides access to a powerful innovation ecosystem. The Tugliq Énergie partnership remains central, serving as the primary demonstration of the technology’s real-world feasibility. This evolution from a single-project focus to a multi-partner, multi-region approach demonstrates a maturing strategy aimed at creating a scalable and repeatable deployment model.

Table: TerraFixing Strategic Partnerships (2024-2025)

Geography: A Calculated Expansion from Canada to the US

Between 2021 and 2024, TerraFixing’s geographic footprint was firmly rooted in Canada. Activities were centered in Quebec, with the development of its flagship 1,000-tonne-per-year project in Fermont, and in Ontario, through its partnership with Toronto-based MaRS and the Ottawa-based MakerLaunch accelerator. This domestic focus was strategic, allowing the company to leverage its key technological advantage—efficiency in cold climates—in its home market, supported by a strong local innovation ecosystem.

The period from 2025 to today signals the beginning of a deliberate international expansion. While Canada remains the core operational theater, evidenced by the continued focus on the Fermont plant, the partnership with Launch Alaska marks a pivotal entry into the United States. Alaska represents a logical and strategic next step, as its climate profile is perfectly suited for TerraFixing’s technology. This expansion is further supported by investment from the Colorado-based non-profit Terraset. This move indicates that TerraFixing is looking to establish a foothold in the larger, well-funded US carbon removal market. The risk lies in navigating a new deployment and regulatory landscape, but the opportunity to prove its model in a second major cold-climate region is a critical step toward becoming a global leader in this niche.

Technology Maturity: From Prototype to Gigaton-Scale Ambition

During the 2021–2024 period, TerraFixing’s technology progressed from a patented concept to a commercially contracted pilot. The core technology, a temperature vacuum swing adsorption (TVSA) cycle using zeolites, was defined with clear performance targets, such as operating energies as low as 1 MWh per tonne of CO2. The key validation event was the Tugliq Énergie agreement, which moved the technology out of the lab and into a real-world deployment plan for a 1,000-tonne-per-year unit. This demonstrated that the technology was mature enough to secure a significant commercial contract.

From 2025 onwards, the narrative around the technology shifted from initial validation to readiness for scaling. The data confirms the existence of a “functional prototype” and outlines an ambition for “gigaton-scale carbon capture.” While the Fermont plant remains in development, it is now positioned as the “maiden DAC plant”—the first of many. The support from Terraset, Milkywire, and Launch Alaska is predicated on a technology that is ready for deployment, not one still in deep R&D. The key inflection point is the transition from proving the technology works (the 2021-2024 goal) to demonstrating it can be deployed reliably and form the basis for a scalable, multi-project business (the 2025-onward goal). The upcoming launch of the Fermont plant is the most critical milestone, as it will provide the real-world performance data needed to unlock the next phase of scaling.

Table: TerraFixing SWOT Analysis (2021-2025)

Forward-Looking Insights: Execution is Now Key

The most recent data from 2025 signals that TerraFixing has successfully navigated the early stages of technology development and is now entering a critical execution phase. The coming year will be defined by the company’s ability to deliver on its promises, with all eyes on the launch of the Fermont DAC plant. This project is the lynchpin of its near-term strategy; its successful operation will validate the technology’s performance in its intended cold-climate environment and serve as a powerful proof point for future investors and partners.

The signals to watch are twofold: operational milestones and strategic expansion. Any announcements regarding the construction, commissioning, and initial CO2 capture rates at the Fermont facility will be highly significant. Concurrently, progress with the Launch Alaska partnership will indicate whether TerraFixing can replicate its model in new geographies. The steady flow of capital from carbon credit pre-purchases appears to be a gaining traction as a key financing lever, and we should expect TerraFixing to pursue similar deals to fund its next wave of projects. In a rapidly evolving DAC market, TerraFixing has carved out a defensible niche. Its success now depends less on its innovative concept and more on its ability to build.

Frequently Asked Questions

What is TerraFixing’s core technology and why is it unique?
TerraFixing specializes in Direct Air Capture (DAC) technology specifically designed for cold climates. Its unique approach uses a zeolite-based temperature vacuum swing adsorption (TVSA) process, which allows it to operate efficiently in sub-zero temperatures where conventional DAC systems often struggle.

Has TerraFixing secured any commercial projects for its technology?
Yes. In May 2024, TerraFixing signed a pivotal $10 million CAD commercial agreement with Tugliq Énergie Co. to develop two carbon capture units, including a 1,000-tonne-per-year facility in Fermont, Quebec. This marked its transition from R&D to its first major commercial application.

How is TerraFixing funding its expansion?
TerraFixing uses a mix of funding sources. It started with support from accelerators and early carbon credit pre-purchases from Klarna and MaRS. More recently, it has secured significant funding from dedicated carbon removal financiers, including a seven-figure investment from the non-profit Terraset and additional credit purchases from Milkywire, to scale deployment.

Is TerraFixing’s focus limited to Canada?
While TerraFixing’s roots and flagship project are in Canada, the company began expanding into the United States in 2025. It has formed a strategic partnership with Launch Alaska to deploy its cold-climate technology in Alaska, marking its first major international step.

What is the biggest challenge or next milestone for TerraFixing?
The most critical next step for TerraFixing is project execution. The company’s near-term success depends on the successful launch and operational performance of its first commercial DAC plant in Fermont. This project will serve as the ultimate proof point for its technology, investors, and future partners.

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