Methanex Corporation and Entropy Inc. partner to reduce emissions

Methanex Corporation and Entropy Inc. 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. 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 CO 2 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.