CALGARY, AB (March 24, 2026): NGIF Accelerator, a catalyst for energy innovation in Canada’s natural gas sector, is pleased to announce a $591,300 funding commitment to Cielo Carbon Solutions. The funding will support the deployment of Canada’s first VPSA modular carbon capture system designed specifically for small- to mid-sized emission sources in remote oil and gas operations.
The project will be led by Global Cleantech Challenge recipient Cielo Carbon Solutions, working closely with CarbonQuest (USA), Tourmaline Oil, and Captivate Technologies (New Zealand), which will provide a next-generation MOF carbon capture material for the system.
The system uses vacuum pressure swing adsorption (VPSA) technology and will be installed on a natural gas compressor engine at Tourmaline’s Banshee facility near Edson, Alberta. It is designed to capture about four tonnes of carbon dioxide (CO₂) per day. Once captured, the CO₂ will be recompressed and permanently stored on-site using Tourmaline’s planned sequestration infrastructure.
Unlike conventional carbon capture systems, this modular technology does not require heat or water and can be deployed in sites with limited space, power, or budget. It is scalable, suitable for facilities capturing hundreds to tens of thousands of tonnes of CO₂ per year, and can also be applied in other sectors such as hospitals, universities, airports, and commercial buildings. The system can be scaled to meet a wide range of needs, from small installations capturing 400 to 1,000 tonnes of CO₂ per year to larger systems capturing more than 100,000 tonnes annually. Potential applications include oil and gas facilities, hospitals, universities, airports, commercial buildings, and district heating systems.
Image: Factory acceptance testing of the VPSA carbon capture system at CarbonQuest’s facility prior to deployment.
The project has now received full funding and is in the early engineering and pre-order phase for equipment. Cielo Carbon aims to have the system fully operational by Q1 2027, marking a significant step in scaling carbon capture solutions across Canada.
“We are thrilled to have received funding from the NGIF Accelerator and Emissions Reduction Alberta (ERA), enabling us to partner with Tourmaline Oil in deploying Canada’s first-of-its-kind CCUS system from CarbonQuest,” said Johnathon Sipos, President of Cielo Carbon Solutions. “Canada is leading globally in responsibly greening natural gas production, and this project perfectly bridges environmental stewardship with the essential economic role of our fossil fuel industry. I’m deeply passionate about this balance and excited to advance this initiative—and many more like it—to the forefront of sustainable energy development.”
“This funding reflects NGIF Accelerator’s commitment to advancing practical, scalable solutions that reduce emissions across Canada’s natural gas sector,” said John Adams, President and CEO, NGIF Accelerator. “By supporting the deployment of a modular carbon capture system designed for smaller and remote facilities, we are helping close a critical gap where conventional technologies often fall short. Through our Industry Grants program, NGIF Accelerator helps de-risk emerging technologies through field trials and pilot projects, accelerating industry validation, customer adoption, and commercialization.”
Industry Grants’ Participants and Project Partners
About Industry Grants program
The Industry Grants program is an industry-led effort that offers non-dilutive grants to fund early-stage startups for technology development and field demonstration. The program specifically de-risks pre-commercial technology solutions that have the potential to increase the environmental performance of the natural gas sector. Each project in the program will progress through technology readiness levels through controlled pilot testing and field trials to advance commercialization.
About NGIF Accelerator
NGIF Accelerator is the not-for-profit arm of NGIF Capital and operates all of the latter organization’s technology and innovation programs. The NGIF Accelerator mandate is to de-risk and accelerate technology development by supporting startups through their pilot projects, field trials, and industry validation. It coordinates with federal and provincial governments to co-fund projects to advance market commercialization. NGIF Accelerator currently operates the Industry Grants program and administers the NGIF Emissions Testing Centre program.
About Cielo Carbon Solutions
Cielo Carbon Solutions aims to become Canada’s leader in decarbonizing natural gas through innovative point-source carbon capture. As the Canadian channel partner for CarbonQuest, the world’s first point-source carbon capture technology designed for the built environment, we deliver turnkey solutions in partnership with CarbonQuest that capture up to 95% of CO2 emissions from natural compressors, gas boilers, CoGen plants, and large-scale applications in hospitals, universities, airports, industrial facilities, and commercial buildings. With deep roots in real estate development, construction, politics, and diverse business ventures, our team is passionately committed to strengthening Canada’s oil and gas industry while driving meaningful environmental progress. We cherish the opportunity to bridge these vital priorities, eliminating the false “either/or” dichotomy that has divided the country and advancing unified, practical paths to a sustainable, net-zero future.
Fund Information:
John Adams
President and CEO, NGIF Accelerator
President and CEO, NGIF Capital Corporation
Media Information:
Dini Philip
Communications Coordinator,
