Carbon Capture Company Signs First-of-Its-Kind Offtake Agreement with the Federal Government

Federal
As committed to in the federal budget to introduce carbon contracts to give certainty to investing in emissions reducing technologies, the government has announced it has signed a contract with Entropy Inc, which has developed a CCUS technology. This unique arrangement, facilitated by the Canada Growth Fund with a $200 million investment in Entropy, involves the purchase of up to 185,000 tonnes of carbon credits annually for 15 years at a set price.

The carbon contract for difference aims to reduce investment risks in clean technologies and supports Entropy's carbon capture project at Advantage Energy’s Glacier Phase 2 plant in Alberta. This project is expected to significantly reduce emissions and represents a major step in Canada's efforts to support innovative decarbonization technologies. The agreement is seen as a key milestone in encouraging private-sector investment in carbon reduction projects and aligns with the government's broader strategy to combat climate change.

CanGEA will be exploring similar public agreements such as public purchase agreements of geothermal heat and/or electricity to support our industry as it continues to progress towards commercial roll-out in Canada.