(TSX: AAV)
CALGARY,
AB, Sept. 28, 2022 /CNW/ - Entropy Inc.
("Entropy" or the "Corporation"), a subsidiary of Advantage Energy
Ltd. ("Advantage"), is pleased to provide an operational update on
its first post-combustion carbon capture and storage ("CCS")
project at the Glacier Gas Plant in Alberta, Canada. Commissioning of Phase 1
(47,000 tonnes per annum of CO2e ("TPA")) has been completed as
expected with "first carbon" injected into permanent geological
storage during August. Entropy believes this is the world's first
commercial project to capture and sequester carbon dioxide from the
combustion of natural gas.
Phase 1 of the Glacier project includes one train of Entropy's
proprietary Modular Carbon Capture and StorageTM
("MCCSTM") process equipment in addition to the
pre-installation of waste heat recovery equipment required for
Phase 2 of the project. The final total installed cost of Phase 1
was $31 million.
First Month of
Operations
The Glacier project is a first-in-kind carbon capture
application – capturing CO2 from the exhaust of a natural gas-fired
reciprocating engine, with a CO2 concentration of 5.5%. In order to
establish optimized process parameters, a multivariate analysis was
conducted for the first month of operations using MEA
(monoethanolamine, the industry-standard solvent).
The CCS process is currently running at steady state over a
multi-week period to gather extended performance data with MEA.
Performance to-date of the Entropy equipment with MEA has met or
exceeded internal expectations and modeling, including the
following notable results:
- Sustained CO2 recovery rates of between 90% and 97%
- Electrical loads have been approximately 35% lower than design
assumptions
- Heat duty achieved using MEA (with no catalysts, no additives
and linear flow path) is better than expectations. Although
Entropy23TM solvent has not been introduced yet at
Glacier, results to-date using Entropy's proprietary process design
have reaffirmed expectations of recovery rates, operating costs and
targeted heat duty
Entropy plans to complete extended baseline MEA data gathering
within the next two weeks prior to switching to
Entropy23TM. Initial efficiency of
Entropy23TM is likely to be determined during the fourth
quarter of 2022, although establishing long-term operating costs,
optimized heat duty and degradation tracking may require up to one
year. Operational updates on Entropy23TM performance
will be announced as various milestones are achieved.
Glacier Phase 1b Progress
Entropy is preparing to install its patent-pending Integrated
Carbon Capture and StorageTM ("iCCSTM")
equipment at Glacier (Phase 1b) with
construction beginning during the fourth quarter of 2022. Phase
1b is designed to capture and store
an additional 16,000 TPA at an expected cost of approximately
$12 million, which includes the
expected impacts of inflation. Phase 1b will be the first deployment of Entropy's
iCCSTM product, whereby a new 5,000 horsepower gas
compressor package will come directly from the fabricator with
Entropy's built-in carbon capture process equipment, reducing
energy intensity and total installed cost significantly below the
cost of a retrofit installation. Phase 1b equipment has been procured and is scheduled
to come on-stream by the second quarter of 2023.
Glacier Phase 2 Update
Glacier Phase 2 is designed to capture an additional 136,000 TPA
and is expected to reach final investment decision ("FID") by the
fourth quarter of 2022 (pending regulatory approvals) and come
on-stream by the end of 2023. Once complete, Entropy expects to
capture in total 200,000 TPA of CO2 (over 90% of total emissions)
from the Glacier Gas Plant and permanently sequester it in a
regulator-approved local saline aquifer. The original cost estimate
for Phase 2 will be updated in advance of FID to account for
inflation. All phases of the Glacier project are anticipated to be
eligible for the recently announced refundable investment tax
credit of 50% from the Canadian government.
Athabasca Leismer Update
Entropy and Athabasca Oil Corp. ("Athabasca") are preparing to
install MCCSTM at Athabasca's Leismer facility with FID for the
first phase now expected early in the fourth quarter of 2022
(pending regulatory approvals). The total projected capture rate is
over 440,000 TPA to be installed in two phases. The first phase is
designed to capture 156,000 TPA with cost estimates now finalized.
This project relies on a local geological storage zone so
construction remains conditional on timely regulatory approvals.
This is expected to be the first commercial CCS project on a
once-through steam generator ("OTSG"), which are widely deployed in
thermal oil operations globally.
Commercial Update
Entropy has continued to advance numerous projects towards FID
with the most active jurisdiction to-date being Alberta. However, the Inflation Reduction Act
of 2022 ("IRA") has introduced significant enhancements to the
incentive structure for CCS in the United
States, including a guaranteed production tax credit of
US$85/tonne for a 12-year term for
applicable projects. These enhancements have created a stronger CCS
incentive market in the United
States with significantly more carbon pricing certainty,
although the Canadian CCS investment tax credit helps to partially
offset such uncertainty in Canada.
Entropy intends to focus its investments on the markets that have
the highest risk-adjusted return.
About Entropy Inc.:
Entropy is a privately-owned company, founded by Advantage
Energy Ltd. and financed by the Brookfield Global Transition Fund,
applying sophisticated science and engineering to develop
commercial CCS projects. Entropy's technology is expected to
deliver commercial profitability with an industry-leading cost
structure using proprietary modular carbon capture and storage
technology. Entropy intends to deploy this technology in the global
effort to reduce and eventually eliminate carbon emissions. Further
information is available at www.entropyinc.com.
Advisory
The information in this press release contains certain
forward-looking statements, including within the meaning of
applicable securities laws. These statements relate to future
events or our future intentions or performance. All statements
other than statements of historical fact may be forward-looking
statements. Forward-looking statements are often, but not always,
identified by the use of words such as "anticipate", "continue",
"demonstrate", "expect", "may", "can", "will", "believe", "would"
and similar expressions and include statements relating to, among
other things: that Entropy will be able to establish baseline
performance data with MEA by running the CCS equipment at steady
state over a multi-week period; that Entropy will gather process
performance data using MEA for the next two weeks prior to
switching to its patent-pending Entropy23TM solvent for
complete performance benchmarking; Entropy's expectations that
initial efficiency will be determined during the fourth quarter of
2022 and the establishment of long-term operating costs, optimized
heat duty and degradation improvements will require up to one year;
that Entropy will announce operational updates on
Entropy23TM performance as various milestones are
achieved; the TPA expected to be captured and stored at Glacier
Phase 1b and the anticipated costs
and timing thereof; that Glacier Phase 1b will reduce energy intensity and total
installation costs significantly below the cost of a retrofit
installation; the anticipated timing that Glacier Phase 1b's
equipment will be procured and the anticipated on-stream date; the
anticipated timing of the Glacier Phase 2 FID and on-stream date;
the TPA expected to be captured from Glacier Phase 2 and that it
will be permanently sequestered in a regulator-approved local
saline aquifer; that Entropy's cost estimate for Phase 2 will be
updated in advance of FID to account for inflation; that all phases
of the Glacier project are anticipated to be eligible for the
recently announced refundable investment tax credit of 50% from the
Canadian government; the anticipated timing of the installation of
MCCSTM at Leismer and the anticipated timing of FID for
the first phase; the anticipated total projected capture rate at
Leismer; that Entropy will focus its investments on the markets
that have the highest risk-adjusted return; Entropy's expectations
that its technology will deliver commercial profitability with an
industry-leading cost structure using proprietary MCCSTM
technology; and that Entropy will deploy its technology in the
global effort to reduce and eventually eliminate carbon emissions.
Entropy's actual decisions, activities, results, performance or
achievement could differ materially from those expressed in, or
implied by, such forward-looking statements and accordingly, no
assurances can be given that any of the events anticipated by the
forward-looking statements will transpire or occur or, if any of
them do, what benefits that Entropy or Advantage will derive from
them.
With respect to forward-looking statements contained in this
press release, Entropy has made assumptions regarding, but not
limited to: that the Glacier project will successfully capture and
sequester carbon from the combustion of natural gas; that the
long-term operating costs of Glacier Phase 1 will not be greater
than anticipated; that Entropy will achieve its anticipated Glacier
Phase 1 performance milestones; that Entropy will be able to
establish baseline performance data with MEA by running the CCS
equipment at steady state over a multi-week period; that Entropy
will receive the regulatory approvals required in connection with
the Leismer project and the anticipated timing thereof; that
Entropy's existing engagements will lead to completed projects;
that Entropy's CCS projects will reach FID; conditions in general
economic and financial markets; effects of regulation by
governmental agencies; current and future commodity prices and
royalty regimes; future exchange rates; royalty rates; future
operating costs; availability of skilled labor; the impact of
increasing competition; that Entropy will have sufficient cash
flow, working capital, debt or equity sources or other financial
resources required to fund its capital and operating expenditures
and requirements as needed; that Entropy's conduct and results of
operations will be consistent with expectations; that Entropy will
have the ability to develop its technology in the manner currently
contemplated; current or, where applicable, proposed assumed
industry conditions, laws and regulations will continue in effect
or as anticipated; and the anticipated benefits and results from
Entropy's technology are accurate in all material respects. Readers
are cautioned that the foregoing lists of factors are not
exhaustive.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Entropy's control,
including, but not limited to: the risk that initial efficiency may
not be determined during the fourth quarter of 2022 and that the
establishment of long-term operating costs, optimized heat duty and
degradation improvements may not occur within one year; that
Glacier Phase 1b may not store and
capture the volume of TPA anticipated at the costs anticipated;
that Glacier Phase 1b may not reduce
energy intensity and total installation costs below the cost of a
retrofit installation; the risk that Glacier Phase 1b's equipment
may not be procured or come on-stream when anticipated; the risk
that Glacier Phase 2's FID and on-stream date may be later than
anticipated; the risk that Glacier Phase 2 may capture less TPA
than anticipated; the risk that not all phases of the Glacier
project may be eligible for the recently announced refundable
investment tax credit of 50% from the Canadian government; the risk
that the installation of MCCSTM at Leismer and the FID
for the first phase in connection therewith may not occur when
anticipated; the risk that Entropy may not receive the regulatory
approvals required in connection with the Leismer project when
anticipated, or at all; the risk that the long-term testing of
Entropy23TM may not lead towards lower installed costs
and energy intensity once fully integrated; the risk that Entropy
may not focus its investments on the markets that have the highest
risk-adjusted return; the risk that Entropy's technology may not
deliver commercial profitability with an industry-leading cost
structure using proprietary MCCSTM technology; the risk
that Entropy's engagements may not lead to completed projects;
changes in general economic, market and business conditions;
industry conditions; actions by governmental or regulatory
authorities including increasing taxes and changes in investment or
other regulations; changes in tax laws and incentive programs;
changes in carbon tax and credit regimes; competition from other
producers; the lack of availability of qualified personnel or
management; intellectual property and patent risks; credit risk;
changes in laws and regulations including the adoption of new
environmental laws and regulations and changes in how they are
interpreted and enforced; ability to comply with current and future
environmental or other laws; stock market volatility and market
valuations; failure to achieve the anticipated benefits and results
of Entropy's technology; failure to achieve the anticipated
benefits of Entropy's relationships with third parties; ability to
obtain required approvals of regulatory authorities; and the
ability to access sufficient capital from internal and external
sources.
Management has included the above summary of assumptions and
risks related to forward-looking information above in order to
provide readers with a more complete perspective on Entropy's
future operations and such information may not be appropriate for
other purposes. Entropy's actual results, performance or
achievement could differ materially from those expressed in, or
implied by, these forward-looking statements and, accordingly, no
assurance can be given that any of the events anticipated by the
forward-looking statements will transpire or occur, or if any of
them do so, what benefits that Entropy or Advantage will derive
therefrom. Readers are cautioned that the foregoing lists of
factors are not exhaustive. These forward-looking statements are
made as of the date of this news release and Entropy and Advantage
disclaim any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, other than as required by
applicable securities laws.
SOURCE Advantage Energy Ltd.