Entropy Lands Stake In Three Canadian Carbon Capture Projects
Entropy Inc. (Entropy), a subsidiary of Advantage Energy Ltd. (Advantage), has entered into a definitive agreement to purchase an interest in three carbon hubs from a Canadian oil and natural gas producer for US$14.6 million and contingent payments of approximately US$10.9 million (subject to adjustment) based on commercial milestones achieved by various projects.
The all-cash transaction encompasses a portfolio of strategic subsurface assets, along with associated commercial contracts, licenses, and other intellectual property. The acquired assets are the Belle Plaine carbon hub and the North Batleford carbon hub, located in Saskatchewan, as well as a 50% interest in the Rolling Hills carbon hub located in southern Alberta.
The acquisition is expected to close in July 2025, subject to satisfaction of certain conditions precedent. TD Securities Inc. acted as the exclusive financial advisor to the vendor. Funds for the acquisition will be provided through the issuance of convertible debentures by Entropy under its aggregate US$500 million strategic investment agreements with Brookfield Asset Management and the Canada Growth Fund, with no capital to be contributed by Advantage. All debentures issued to finance the acquisition will be obligations of Entropy and are non-recourse to Advantage.
“We are excited to expand Entropy’s footprint into Saskatchewan and strengthen our commitment to the carbon capture and sequestration business in Alberta,” said Entropy chief executive officer Sanjay Bishnoi. “This acquisition marks a significant step in our commercial growth. We are also excited to build relationships with new customers and advance existing infrastructure projects that will enable CO₂ [carbon dioxide] to reach these newly acquired storage hubs.”
Other Projects
Entropy is continuing its operations and scale-up of carbon capture and sequestration operations at the Glacier gas plant. With Phase 1a preparing to be incorporated into Phase 2 operations, Entropy continues to see consistent, strong carbon capture at Phase 1b (>90% capture and >98% run time) with heat of regeneration in the range of 2.5-2.9 GJ/Tonne CO2 captured.
Entropy said that progress on the previously announced Glacier Phase 2 continues on time and, despite tariffs and inflation, within 10% of the budget set at the Final Investment Decision on July 9, 2024. Fabrication is underway on all long lead items, including the Solar T130 gas-fired turbine, with construction set to begin this summer. Entropy anticipates Glacier Phase 2 will reach commercial operations by Q2 2026.
