Methanex Corporation, one of the world’s largest methanol producers and suppliers and Entropy Inc., a leader in carbon capture and storage solutions, have entered into an agreement to invest in a Preliminary Front-End Engineering and Design study for carbon capture, utilization and sequestration deployment at Methanex’s Medicine Hat, Alberta facility.
The 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, according to a news release.
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.
