Today: Apr 16, 2024

Canada pumps $200M into Carbon Capture Startup Entropy: Bold Investment

4 months ago

The Government of Canada has invested $200 million through the Canada Growth Fund (CGF) in carbon capture startup Entropy. The investment is aimed at de-risking Entropy’s projects to help decarbonize emissions-intensive, hard-to-abate industries. Entropy develops modular carbon capture and storage facilities to capture and sequester emissions at industrial sources. The company’s first commercial CCS project at the Glacier Gas Plant in Alberta went into operation last year. The new investment from CGF will help to de-risk and accelerate private CCS development, according to Entropy President and CEO Mike Belenkie.

Key points:

  • The Government of Canada has invested $200 million through the Canada Growth Fund (CGF) in carbon capture startup Entropy
  • The investment is aimed at de-risking Entropy’s projects to help decarbonize emissions-intensive, hard-to-abate industries

The Government of Canada has announced a $200 million investment in carbon capture startup Entropy. The investment is being made through the Canada Growth Fund (CGF) and is aimed at de-risking Entropy’s projects to help decarbonize emissions-intensive, hard-to-abate industries. Entropy develops modular carbon capture and storage facilities to capture and sequester emissions at industrial sources. The company’s first commercial carbon capture and sequestration (CCS) project at the Glacier Gas Plant in Alberta went into operation last year. The new investment from CGF will help to de-risk and accelerate private CCS development, according to Entropy President and CEO Mike Belenkie.

Carbon capture and storage (CCS) is seen as a key technology for achieving net-zero emissions targets. It involves capturing carbon dioxide emissions from power plants and industrial facilities and storing them underground. However, CCS projects often face significant financial and regulatory challenges. The investment from the Government of Canada will help to address some of these challenges and support the development of CCS technology in the country.

According to a recent report from S&P Global Ratings, CCS projects face significant financial risks due to uncertainty in carbon pricing and regulatory frameworks. The long-term fixed price carbon credit purchase agreement between Entropy and CGF will help to de-risk and accelerate private CCS development. The agreement will provide a guaranteed long-term carbon price, which will make it easier for Entropy to secure financing for its projects. It will also help to attract private investment and support the growth of the carbon capture industry in Canada.

The investment from the Government of Canada is part of its broader efforts to support the transition to a low-carbon economy. The Canada Growth Fund (CGF) was established earlier this year with $15 billion in capital to invest in low-carbon projects, technologies, businesses, and supply chains. The fund aims to attract private investment and help develop a clean economy in Canada. The investment in Entropy follows the fund’s first investment in geothermal energy company Eavor Technologies.

The carbon capture industry is expected to play a key role in reducing greenhouse gas emissions and achieving climate goals. According to the Intergovernmental Panel on Climate Change (IPCC), carbon dioxide removal methods will be needed to limit global warming to 1.5 degrees Celsius. These methods will involve capturing and storing billions of tons of carbon dioxide annually. However, most carbon capture technologies are still in the early stages of development and involve significant upfront investment. The investment from the Government of Canada will help to accelerate the development and deployment of carbon capture technology in the country.