Methanex and Entropy partner to reduce emissions in methanol production

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 (CCU”) 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 CO ₂ 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 tpd of CO₂.
• Economic impact: involves an investment of approximately CAD $100 MM (~USD $75 MM), 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 tpy 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.

“We’re excited to advance this first-of-its-kind carbon capture solution in North America in collaboration with Entropy,” said Mark Allard, Senior Vice President, Low Carbon Solutions (“LCS”), Methanex. “This project exemplifies Methanex’s commitment to reduce our global GHG emission intensity by 10% by 2030 and to advance at least one LCS project into pre-FEED in 2024.”

“We are pleased to be collaborating with Methanex, a global leader with Canadian roots, on this ground-breaking CCUS project,” said Mike Belenkie, President and CEO of Entropy. “Our CCS technology is designed to reduce carbon emissions to the atmosphere as economically as possible, making more projects like this one investable. Having successfully proven our technology at the Glacier Gas Plant in Alberta, the only gas-fired CCS facility in the world, this partnership with Methanex allows us to expand into carbon capture and utilization (“CCU”), reducing carbon emissions but also increasing productivity for our partners.”

“Alberta is proud to be a leader in CCUS technology and this project highlights our work in CCUS and energy diversification. We are working to phase out emissions and I’m thrilled that Methanex and Entropy have chosen to contribute to our carbon reduction goals in the Medicine Hat area. This will not just benefit the region, it will benefit Alberta and the world,” said the Honourable Danielle Smith, Premier of Alberta and MLA for Brooks-Medicine Hat.

“We’re excited about this project’s potential to create jobs and ensure long-term economic resilience in southeastern Alberta,” says Medicine Hat Deputy Mayor Ramona Robins. “It aligns with our strategy for energy transition as well as our vision to make Medicine Hat a local carbon capture hub.”

Methanex and Entropy are committed to collaborating with stakeholders throughout the project’s lifecycle to ensure its success and establish it as a landmark initiative for Alberta.