In a strategic collaboration to advance clean energy solutions, Methanex, a major player in global methanol production, has joined forces with Entropy, a leader in carbon capture and storage. This partnership focuses on a Pre-FEED study to implement Entropy's innovative Carbon Capture, Utilization, And Sequestration (CCUS) technology at Methanex's Medicine Hat facility in Alberta. The project leverages both Entropy's expertise in capturing carbon emissions and Methanex's extensive experience in methanol manufacturing.

A portion of the captured CO2 will be utilized to enhance methanol production, showcasing the leadership of these Canadian companies in advancing low-carbon initiatives. Following a final investment decision, Entropy will take ownership and responsibility for constructing the carbon capture equipment near Methanex's facility. Methanex will contribute by providing essential utilities and overseeing the connection points between the two facilities. Once operational, Methanex will assume responsibility for managing the day-to-day operations of the capture equipment.

The carbon capture initiative targets capturing approximately 400 tonnes of CO2 per day. With an estimated investment of CAD $100 million (~USD $75 million), primarily funded by Entropy, this project promises substantial economic impact. It is anticipated to generate around 200 construction jobs during the implementation phase, with several permanent positions once operational. This investment underscores the project's significance in advancing sustainable practices while contributing positively to local employment and the broader economy.

Innovatively utilizing CO2, a portion of the captured carbon dioxide will be repurposed as feedstock to produce approximately 50,000 tonnes of additional methanol annually. The remaining CO2 will be securely sequestered underground, ensuring long-term carbon storage and minimizing environmental impact. This dual approach not only enhances Methanex's methanol production capacity but also demonstrates a proactive commitment to sustainable practices by effectively reducing greenhouse gas emissions through carbon utilization and storage technologies.

The Pre-FEED study will assess the project's economic feasibility, examining factors such as pore space availability, carbon offtake agreements, alignment with municipal regulations, and potential funding from Provincial and Federal carbon reduction programs. This evaluation is crucial for determining the project's financial viability and securing necessary support for its implementation.

Mark Allard, Senior Vice President of Low Carbon Solutions at Methanex, expressed enthusiasm about their pioneering carbon capture project in North America alongside Entropy. Highlighting Methanex's commitment to reducing global greenhouse gas emissions by 10% by 2030, Allard emphasized their strategic goal of advancing at least one Low Carbon Solutions project into Pre-FEED stage in 2024.

Mike Belenkie, President and CEO of Entropy, underscored their collaboration with Methanex, praising them as a global leader rooted in Canada. Belenkie highlighted Entropy's CCS technology's success at the Glacier Gas Plant in Alberta, the world's sole gas-fired CCS facility. He emphasized their approach to economically reducing carbon emissions to promote investment in similar projects, including carbon capture and utilization (CCU) initiatives that not only mitigate emissions but also enhance productivity for partners.