OIL - Methanex and Entropy Partner to Reduce Emissions in Methanol Production | Benzinga
Leading Canadian Companies Enter Pre-FEED for Carbon Capture Utilization and Sequestration Deployment in Alberta
VANCOUVER, BC and CALGARY, AB, July 17, 2024 /CNW/ - Methanex Corporation ("Methanex") (TSX:MX) (NASDAQ:MEOH), one of the world's largest methanol producers and suppliers and Entropy Inc. ("Entropy"), a leader in carbon capture and storage solutions, have entered into an agreement to invest in a Preliminary Front-End Engineering and Design ("Pre-FEED") study for carbon capture, utilization and sequestration ("CCUS") deployment at Methanex's Medicine Hat, Alberta facility. This collaboration will leverage Entropy's proprietary modular post-combustion carbon capture technology and Methanex's manufacturing expertise to utilize a portion of the captured CO2 to produce additional methanol, showcasing the leadership of two Canadian companies in the low-carbon transition. Upon final investment decision, Entropy will construct and own the capture equipment adjacent to Methanex's facility and Methanex will supply the utilities, build the tie-ins to its facility and operate the capture equipment once commissioned.
Key Project Highlights:
- Emissions capture: targets approximately 400 tonnes of CO2 per day.
- Economic impact: involves an investment of approximately CAD $100 million (~USD $75 million), the largest portion of which will come from Entropy. The investment is expected to create about 200 construction jobs and several permanent jobs once operational.
- Innovative use of CO2: a portion of the captured CO2 will be used as feedstock to produce approximately 50,000 tonnes annually of additional methanol, with the remaining CO2 permanently sequestered safely underground.
The Pre-FEED will also evaluate the economic viability of the project including access to pore space, carbon offtake agreements, municipal alignment, and funding from both Provincial and Federal carbon reduction programs.
"We're excited to advance this first-of-its-kind carbon capture solution in North America in collaboration with Entropy," said Mark Allard, Senior Vice President, Low Carbon Solutions ("LCS"), Methanex. "This project exemplifies Methanex's commitment to reduce our global GHG emission intensity by 10% by 2030 and to advance at least one LCS project into Pre-FEED in 2024."
"We are pleased to be collaborating with Methanex, a global leader with Canadian roots, on this ground-breaking CCUS project," said Mike Belenkie, President and CEO of Entropy. "Our CCS technology is designed to reduce carbon emissions to the atmosphere as economically as possible, making more projects like this one investable. Having successfully proven our technology at the Glacier Gas Plant in Alberta, the only gas-fired CCS facility in the world, this partnership with Methanex allows us to expand into carbon capture and utilization ("CCU"), reducing carbon emissions but also increasing productivity for our partners."
"Alberta is proud to be a leader in CCUS technology and this project highlights our work in CCUS and energy diversification. We are working to phase out emissions and I'm thrilled that Methanex and Entropy have chosen to contribute to our carbon reduction goals in the ...