Methanex(US:MEOH) Newsfilter·2024-07-17 21:00Core Insights - Methanex Corporation and Entropy Inc. have entered into an agreement to invest in a Preliminary Front-End Engineering and Design (Pre-FEED) study for carbon capture, utilization, and sequestration (CCUS) at Methanex's facility in Medicine Hat, Alberta, showcasing leadership in the low-carbon transition [9][10] - The project aims to capture approximately 400 tonnes of CO2 per day, with an investment of approximately CAD $100 million (around USD $75 million), expected to create about 200 construction jobs and several permanent jobs once operational [10][11] - A portion of the captured CO2 will be utilized as feedstock to produce approximately 50,000 tonnes of additional methanol annually, while the remaining CO2 will be permanently sequestered underground [10][11] Company Collaboration - The collaboration leverages Entropy's proprietary modular post-combustion carbon capture technology and Methanex's manufacturing expertise, with Entropy constructing and owning the capture equipment adjacent to Methanex's facility [9][10] - Methanex aims to reduce global GHG emission intensity by 10% by 2030 and advance at least one Low Carbon Solutions project into Pre-FEED in 2024 [11] - The project aligns with Alberta's strategy for energy transition and carbon reduction goals, contributing to both regional and global benefits [11][12] Financial and Strategic Investments - Entropy has entered into a strategic investment agreement with the Canada Growth Fund, which includes a CAD $200 million investment and a Carbon Credit Offtake agreement for up to one million tonnes per annum of carbon credits for 15 years [5] - The partnership with Methanex is expected to enhance the economic viability of the project through access to funding from provincial and federal carbon reduction programs [2][5] - Entropy's technology is designed to deliver commercial profitability with an industry-leading cost structure, aiming to scale up the deployment of CCS technology globally [5]