(TSX: AAV)
Glacier Phase 2 Investment Details
Entropy is pleased to announce FID of our second post-combustion carbon capture and storage ("CCS") project, with an onstream date expected in the second quarter of 2026. Highlights of the project include:
- All material unabated emissions sources at the Glacier Gas Plant will be captured using Entropy's industry-leading modular CCS ("MCCS™") technology, targeting over 90% efficiency.
- Total CO2 capture capacity will be 160,000 tonnes per annum ("tpa"), from nine gas-fired engines plus one gas-fired power generation turbine. This is in addition to the existing Phase 1 capacity of 32,000 tpa.
- Total cost of Glacier Phase 2 capture equipment, compression, transportation and storage wells is
$127 million , resulting in a capital efficiency of$800 /tpa, or$600 /tpa for capture only excluding compression, transportation and storage. - All capital expenditures are expected to be eligible for the recently legislated federal investment tax credit of up to 50%, plus the upcoming
Alberta carbon capture incentive program of 12%. - All CCS process heat will be supplied from waste heat recovery (0 GJ/tonne external heat).
- Parasitic power load is expected to be 10% for capture and 10% for disposal compression.
- All CO2 will be permanently disposed of into a saline aquifer approximately two kilometers below the surface, strictly regulated by the
Alberta government. - Revenue from the project is contractually underpinned 75% by a 15-year Carbon Credit Offtake ("CCO") agreement with
Canada Growth Fund ("CGF") and 25% by a 15-year Power Purchase Agreement ("PPA") with Advantage.
Glacier Phase 2 technology integrates multiple industry-first innovations developed since 2022 while operating Glacier Phase 1, including process design refinements, standardized procedures, enhanced operational strategies identified using EntropyIQ™ data analysis, solvent enhancements, and customized original equipment facilitated by manufacturers.
To achieve commerciality, Entropy has advanced several carbon policy and revenue models including contractually guaranteed offtake via the world's first 15-year CCO. Entropy's investment in Glacier Phase 2 will have no material exposure to potential changes in federal and provincial carbon pricing.
Entropy Entering Independent Power Producer Market with
Entropy is pleased to announce its first investment in clean power generation. In conjunction with the Glacier Phase 2 CCS project, Entropy will repower Advantage's Glacier Gas Plant by installing a 15 MW gas-fired turbine and selling power to Advantage via a 15-year PPA while capturing approximately 90% of the CO2 emissions from the turbine. Details of the project include the following:
- Entropy will install the modular power plant at a cost of
$47 million , providing power and heat for the Glacier plant and Entropy's CCS equipment. - Advantage will receive higher-reliability base-load power at a cost below or equal to the existing on-site generators.
- Entropy will install one iCCS Turbine™ module on the gas turbine, capturing CO2 from its exhaust (3.5% CO2 concentration) at no cost to Advantage.
- With the more efficient turbine power source, the existing generators will be shut-in, eliminating prior CO2 and methane emissions.
- Entropy will compress, transport and dispose of the captured CO2 in an Entropy-owned disposal well.
Injectivity Results from Recently Drilled CO2 Disposal Well for
Injectivity testing at the recently-drilled Glacier 16-15-076-12W6 CO2 disposal well has been completed, indicating an initial capacity of up to 3 million tpa. The well was drilled to 2,115 meters vertical depth with a horizontal length of 2,700 meters for a total cost of
Entropy has signed an agreement to jointly develop a data center powered by gas-fired turbines and decarbonized by iCCS Turbine™ technology. The project involves construction of base-load power generation for the data center, while capturing and storing CO2 at an Entropy-developed CO2 storage hub.
Current Outlook for Remaining Unallocated CCO Volumes
With the advancement of Glacier Phase 2, Entropy will allocate approximately a quarter of CGF's initial 600,000 tpa commitment (please refer to Entropy press release dated
Glacier Phase 1 Operational Update
Glacier Phase 1A (16,000 tpa capacity) was commissioned in
Organizational Update
Entropy is pleased to announce the promotion of Mr.
Entropy would like to express our great appreciation to Mr.
We are also pleased to announce Mr.
About Entropy
Entropy is a privately-owned company applying sophisticated science and engineering to develop commercial CCS projects. Entropy entered a strategic $300 million investment agreement with
Forward-Looking Information and Advisory
All references in this press release are to Canadian dollars (C$) unless otherwise indicated.
The information in this press release contains certain forward-looking statements, including within the meaning of applicable securities laws. These statements relate to future events or our future intentions or performance. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "continue", "demonstrate", "expect", "may", "can", "will", "believe", "would" and similar expressions and include statements relating to, among other things: Entropy's position, strategy and development plans and the anticipated benefits to be derived therefrom; the anticipated onstream date of Glacier Phase 2 and the anticipated benefits to be derived therefrom; the anticipated results of the Glacier Phase 2 project, including targeted efficiency, capture capacity, total costs, expectations that all CCS process heat will be supplied from waste heat recovery and targeted parasitic power load; expectations that Glacier Phase 2 will have no material exposure to potential changes in federal and provincial carbon pricing; Entropy's investment in clean power generation and the anticipated costs thereof and benefits to be derived therefrom; expectations that the recently drilled CO2 disposal well for Glacier will accommodate Phase 2 CO2 volumes once commissioned; the anticipated benefits to be derived from Entropy's agreement to jointly develop a clean power data center and its expectations that carbon storage will be provided by one of Entropy's two global-scale CO2 storage hubs in
With respect to forward-looking statements contained in this press release, Entropy has made assumptions regarding, but not limited to: that Entropy's future operating results will be consistent with the results of its injectivity tests at the recently drilled CO2 disposal well; that the long-term operating costs of Entropy's CCS projects will not be greater than anticipated; that Entropy's existing engagements, including with respect to its projects in
These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Entropy's control, including, but not limited to: the risk that Entropy may not realize the benefits anticipated from its CCS projects when anticipated, or at all; the risk that the emissions captured from Entropy's projects under development in
Management has included the above summary of assumptions and risks related to forward-looking information above in order to provide readers with a more complete perspective on Entropy's future operations and such information may not be appropriate for other purposes. Entropy's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Entropy or Advantage will derive therefrom. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this news release and Entropy and Advantage disclaim any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
This press release contains information that may be considered a financial outlook under applicable securities laws about the Corporation's potential financial position, including, but not limited to: the anticipated costs of Glacier Phase 2 and Entropy's investment in clean power generation; all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Corporation and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, neither Entropy nor Advantage undertakes any obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Corporation's potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change.
The following abbreviations and terms used in this press release have the meanings set forth below:
| references power generation that the Corporation believes is expected to |
CO2 | carbon dioxide |
GJ | gigajoule |
tpa | tonnes per annum |
SOURCE
© Canada Newswire, source