Methanex and Entropy Partner to Reduce Emissions in Methanol Production
Leading Canadian Companies Enter Pre-FEED for Carbon Capture Utilization and Sequestration Deployment in
Key Project Highlights:
- Emissions capture: targets approximately 400 tonnes of CO2 per day.
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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
"We are pleased to be collaborating with Methanex, a global leader with Canadian roots, on this ground-breaking CCUS project," said
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"We're excited about this project's potential to create jobs and ensure long-term economic resilience in southeastern
Methanex and Entropy are committed to collaborating with stakeholders throughout the project's lifecycle to ensure its success and establish it as a landmark initiative for
About Methanex Corporation
Methanex Corporation is one of the world's largest producers and suppliers of methanol to major international markets in
About
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 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", "call for", "can", "will", "believe", "would" and similar expressions and include statements relating to, among other things: the anticipated benefits to be derived from Methanex's and Entropy's agreement to invest in a Pre-FEED study for CCUS deployment; the anticipated amount of emissions captured per day; the anticipated amount of investment and portion size of investment contributed by Entropy; the expectation that the investment will create about 200 construction jobs and several permanent jobs; the anticipated amount of additional methanol produced from captured CO 2 as feedstock and the expectation that remaining CO 2 will be permanently sequestered safely underground; the anticipated expansion into CCU and the potential to reduce carbon emissions while increasing productivity for Entropy's partners; Methanex's and Entropy's actual decisions, activities, results, performance or achievement could differ materially from those expressed in, or implied by, such forward-looking statements and accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do, what benefits that Methanex or Entropy will derive from them.
With respect to forward-looking statements contained in this press release, Methanex and Entropy have made assumptions regarding, but not limited to: that Methanex's and Entropy's agreement to invest in a Pre-FEED study for CCUS deployment will lead to a completed project, the net reduction of carbon emissions; that the long-term operating costs of Entropy's CCS projects will not be greater than anticipated; that the government will provide additional clarity on the federal investment tax credit and carbon price certainty; conditions in general economic and financial markets; effects of regulation by governmental agencies; current and future commodity prices and royalty regimes; future exchange rates; future royalty rates; future operating costs; availability of skilled labor; the impact of increasing competition; the anticipated amount of CO 2 captured, stored and offset; that Entropy will have sufficient financial resources required to fund their capital and operating expenditures and requirements as needed; that Entropy will have the ability to develop its technology in the manner currently contemplated; current or, where applicable, proposed assumed industry conditions, laws and regulations will continue in effect or as anticipated; and the anticipated benefits and results from Entropy's technology are accurate in all material respects. Readers are cautioned that the foregoing lists of factors are not exhaustive.
These statements involve substantial known and unknown risks and uncertainties, certain of which are beyond Methanex's and Entropy's control, including, but not limited to: changes in general economic, market and business conditions; industry conditions; actions by governmental or regulatory authorities including increasing taxes and changes in investment or other regulations; changes in tax laws and incentive programs; changes in carbon tax and credit regimes; competition from other producers; the lack of availability of qualified personnel or management; intellectual property and patent risks; credit risk; changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; ability to comply with current and future environmental or other laws; failure to achieve the anticipated benefits and results of Entropy's technology; failure to achieve the anticipated benefits of Methanex's and Entropy's relationships with third parties; and the ability to obtain required approvals of regulatory authorities.
Methanex's and Entropy's actual results, performance or achievement in respect of the project 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 Methanex or Entropy 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 Methanex and Entropy 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.
T he following abbreviations and terms used in this press release have the meanings set forth below:
CO
2
carbon dioxide
tpa tonnes per annum
SOURCE