Methanex Corporation and Entropy Inc. 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 agreement is dated July 2024.

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.

The project targets approximately 400 tonnes of CO2 capture per day. It involves an investment of approximately CAD $100 million (~USD $75 million), the largest portion of which will come from Entropy.

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.