Deputy Prime Minister visits Entropy’s Glacier clean gas project, a recipient of the Canada Growth Fund’s first carbon contract for difference

From: Department of Finance Canada

News release

A $200 million federal investment is creating more than 1,200 good jobs and de-risking cutting-edge carbon capture and sequestration technology

August 19, 2024 - Saddle Hills, Alberta - Department of Finance Canada

Today, the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, visited Advantage Energy’s Glacier plant in Alberta’s Peace Country, the world’s first abated natural gas facility. She highlighted how the Canada Growth Fund’s $200 million investment and carbon contract for difference are enabling Calgary’s Entropy Inc. to implement carbon capture and sequestration technology. 

In December 2023, the Canada Growth Fund announced a $200 million direct investment in Entropy Inc., as well as the world’s first carbon offtake agreement. The Canada Growth Fund will purchase up to 185,000 tonnes per year of carbon credits for 15 years at an initial price of $86.50 per tonne. This investment enabled Entropy to scale-up its technology to the Glacier gas plant, which will reduce emissions by approximately 2.8 million tonnes over 15 years and support more than 1,200 good jobs for Albertans.

On July 9, 2024, Entropy announced it will move forward with Glacier Phase 2—a decision made possible by the Canada Growth Fund’s deal, as it de-risks the expansion by providing carbon pricing certainty. Entropy also announced its first investment into the clean power generation market, a 15 megawatt gas-fired turbine at the Glacier plant, which will capture 90 per cent of CO2 emissions and is expected to come online in the second quarter of 2026. 

In addition to the Canada Growth Fund’s investment and carbon contract for difference, Entropy is expected to be eligible for the federal government’s Carbon Capture, Utilization, and Storage investment tax credit, which offers tax credits worth up to 60 per cent of eligible expenditures.

The federal government’s investment in Entropy is just one example of how Canada’s economic plan is helping Canadian clean tech companies scale-up to create good-paying jobs and accelerate Canada’s progress to net-zero emissions by 2050.

Quotes

“Through our Canada Growth Fund and our Carbon Capture, Utilization, and Storage investment tax credit, we are growing the economy while reducing emissions, creating more good-paying jobs, and helping innovators scale-up. By securing Canada’s position at the forefront of clean technology and clean energy, we are attracting the investment needed to build a more prosperous future for every generation.”

- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance

Quick facts

  • Entropy Inc., in partnership with the University of Regina, has developed a first-of-its-kind modular carbon capture and storage technology to reduce emissions in hard-to-abate industries, which is expected to be over 90 per cent efficient. 

  • A form of carbon contracts for difference, carbon credit offtake agreements de-risk emissions-reducing investments by guaranteeing the purchase of carbon credits for abated emissions at a fixed price.

  • The Canada Growth Fund is a $15 billion arm’s length public investment vehicle launched by the federal government to attract private capital and invest in Canadian projects and businesses, which is led by Canada’s world-leading public sector pension professionals. 

    • The Canada Growth Fund makes strategic investments to help Canada meet the following national economic and climate objectives:
      • Reduce emissions and achieve Canada’s climate targets;
      • Accelerate the deployment of key technologies, such as low-carbon hydrogen and carbon capture and sequestration;
      • Scale-up companies that will create good jobs, drive productivity and clean growth across new and traditional sectors of Canada’s industrial base;
      • Encourage the retention of intellectual property in Canada; and,
      • Capitalize on Canada’s abundance of natural resources and strengthen critical supply chains to secure Canada’s future economic and environmental well-being.
    • Since its launch just over a year ago, the Canada Growth Fund has announced seven investments that total $2 billion and three carbon contracts for difference.

  • The 2023 Fall Economic Statement announced that the Canada Growth Fund will be the principal federal entity to issue carbon contracts for difference (CCFDs), including allocating, on a priority basis, up to $7 billion of its current $15 billion in capital to issue all forms of contracts for difference and offtake agreements.

  • Budget 2024 announced that the Canada Growth Fund is developing an expanded range of CCFD offerings tailored to different markets and their unique risks and opportunities. The Canada Growth Fund will continue offering bespoke CCFDs and carbon offtake agreements, with a focus on provinces contributing significantly to greenhouse gas emissions reductions.

  • Budget 2024 also announced that the Canada Growth Fund will explore ways to broaden its approach, for example, by developing off-the-shelf contracts for certain jurisdictions and ways to offer these contracts on a competitive basis for a set amount of emissions reductions.

Associated links

Contacts

Media may contact:

Katherine Cuplinskas
Deputy Director of Communications
Office of the Deputy Prime Minister and Minister of Finance
Katherine.Cuplinskas@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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