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 Medicine Hat area. This will not just
benefit the region, it will benefit Alberta and the world,” said
the Honourable Danielle Smith, Premier of Alberta and MLA for
Brooks-Medicine Hat.
“We’re excited about this project’s potential to
create jobs and ensure long-term economic resilience in
southeastern Alberta,” says Medicine Hat Deputy Mayor Ramona
Robins. “It aligns with our strategy for energy transition as well
as our vision to make Medicine Hat a local carbon capture hub.”
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
Alberta.
About Methanex
CorporationMethanex Corporation is one of the world’s
largest producers and suppliers of methanol to major international
markets in Asia Pacific, North America, Europe, and South America.
The company’s methanol production sites are located in Canada, the
United States, Trinidad, Chile, Egypt and New Zealand. Methanex is
headquartered in Vancouver, Canada, and the company’s common shares
trade on the Toronto Stock Exchange under the symbol MX and on the
NASDAQ Global Select Market under the symbol MEOH. For more
information, please visit www.methanex.com.
Inquiries:Sarah HerriottDirector, Investor
RelationsMethanex Corporation 604-661-2600 or Toll Free:
1-800-661-8851www.methanex.com
About Entropy Inc. 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
Brookfield in 2022. In 2023, Entropy entered a strategic investment
with the Canada Growth Fund which includes a $200 million strategic
investment and a Carbon Credit Offtake agreement for up to one
million tpa of carbon credits for 15 years. These transactions have
been undertaken to scale up the deployment of Entropy’s CCS
technology globally. Entropy’s technology is expected to deliver
commercial profitability with an industry-leading cost structure
using proprietary modular carbon capture and storage technology.
Entropy intends to deploy this technology in the global effort to
reduce and eventually eliminate carbon emissions. Further
information is available at www.entropyinc.com.
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 CO2 as feedstock and the
expectation that remaining CO2 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 CO2 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.
The following abbreviations and terms used in this press release
have the meanings set forth below:
CO2 |
carbon dioxide |
tpa |
tonnes per annum |
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