SUMMARY

Phase 2 will increase capture at Glacier gas plant to 193,000 tonnes/year of carbon dioxide. [Image: Advantage Energy]

By Dale Lunan

Advantage Energy subsidiary Entropy said July 9 it had made a positive final investment decision (FID) on the C$127mn (US$93.1mn) second phase of its Glacier carbon capture and storage (CCS) project in west central Alberta.

At the same time, it said it had reached an agreement with Advantage to repower the Glacier gas plant by installing a 15 MW gas-fired turbine and selling power to Advantage under a 15-year power purchase agreement (PPA). About 90% of the CO2 emissions from the new C$47mn power plant will be captured and sequestered under the Glacier Phase 2 project.

The existing generators at Glacier will be retired once the new power plant is commissioned, eliminating a prior source of CO2 and methane emissions.

When Phase 2 at Glacier becomes operational in Q2 2026, all material unabated emission sources at the Glacier gas plant will be captured using Entropy’s modular CCS technology, which targets capture efficiencies over 90%.

Total CO2 capture capacity of Phase 2 is expected to be 160,000 tonnes/year from nine gas-fired engines and the 15 MW gas-fired power generation turbine. This is in addition to existing Phase 1 capture capacity of 32,000 tonnes/year.

All CO2 captured at Glacier will be compressed and permanently sequestered into a saline aquifer about two km below the surface, strictly regulated by the Alberta Energy Regulator. Recent injectivity tests of Entropy’s disposal well, which has been storing Phase 1 emissions, indicate an initial storage capacity of some 3mn tonnes/year.

Phase 2 capital expenditures are expected to be eligible for the recently legislated federal investment tax credit of up to 50% and the Alberta government’s upcoming Alberta Carbon Capture Incentive Program (ACCIP) grant of 12%.

Revenue from the Glacier CCS project is contractually underpinned 75% by the world’s first carbon credit offtake (CCO) agreement with Canada Growth Fund and 25% by revenue generated under the PPA with Advantage Energy. With the CCO in place, Entropy’s investment in Glacier Phase 2 will have no material exposure to potential future changes in federal or provincial carbon pricing.

Alongside the Glacier Phase 2 investments, Entropy also said it had signed an agreement to jointly develop a data centre powered by gas-fired turbines and decarbonised by its integrated CCS Turbine (iCCS Turbine™) technology. The project involves construction of base-load power generation for the data centre and the capture and storage of CO2 emissions from the power generation at an Entropy-developed CO2 storage hub.


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