(TSX: AAV)
CALGARY, AB, July 27, 2021 /CNW/ - Entropy Inc.
("Entropy" or the "Corporation", a subsidiary of Advantage Energy
Ltd. or "Advantage") is pleased to announce initial results from
its technology development program at the University of Regina's Clean Energy Technologies
Research Institute ("CETRI") and the appointment of Jason Chadwick to Entropy's executive team.
Technology Development Update
Extended testing conducted at CETRI's world-class research
facility has confirmed Entropy's proprietary carbon capture solvent
(named "Entropy23TM") possesses high-performance
characteristics that significantly exceed industry standards.
The recently completed phase 1 of CETRI's extended protocol was
conducted using a gas mixture with 4% CO2 concentration
in order to optimize the solvent blend for common post-combustion
carbon capture applications including natural gas-fired turbines,
reciprocating engines and boilers.
Prior CETRI research over the last 5 years that led to the
discovery and formulation of Entropy23TM was conducted
using more traditional testing concentrations of 15%.
Together, the data sets demonstrate the broad applicability
of Entropy23TM across a wide range of post-combustion
carbon capture applications.
The process of scrubbing carbon dioxide from a mixture of gases
is inherently energy intensive. CETRI confirmed (using a
simple screening method at 4% CO2 concentration) that
monoethanolamine ("MEA", the industry standard carbon capture
solvent) requires 12.15 GJ/tonne for the primary CO2
capture and regeneration process in the laboratory.
Entropy23TM requires 3.15 GJ/tonne for the same process,
a step change reduction of 74%. These physical properties
directly impact the energy inputs required to capture carbon
dioxide from a flue-gas stream, and the costs of requisite
equipment.
Highlights of the Entropy23TM phase 1 extended
testing include:
- Heat duty is ~3.85 times lower than MEA, indicating a major
reduction in energy input costs and operating costs
- Initial absorption rate is 66% higher than MEA, indicating the
potential to reduce equipment size and cost
- Initial desorption rate is ~3.85 times that of MEA, indicating
the potential to reduce equipment size and cost
- Cyclic capacity is 85% higher than MEA, indicating the ability
to reduce the volume of solvent, equipment size and cost
- Lean loading at 110oC is approximately 0, achieving
nearly complete release of captured CO2 at lower
relative temperatures, which is expected to further reduce energy
requirements
- Significantly lower NH3 emission rates than MEA,
indicating high stability and lower solvent degradation, which is
expected to reduce operating costs
CETRI has now proceeded to phase 2 of the technology development
protocol, which will include extended testing of
Entropy23TM using specific exhaust streams that match
industrial emissions over multiple months, to confirm the enhanced
degradation characteristics. The results of this phase are
expected to be complete in early 2022, with regular progress
updates throughout. The final phase of testing will be
conducted beginning in Q2 2022 at Entropy's first commercial
Modular Carbon Capture and Storage ("MCCS") development at the
Advantage Glacier Gas Plant, allowing Entropy to produce in-situ,
verifiable costs and energy intensity metrics for commercial
applications by mid-2022.
When combined with Entropy's patent pending MCCS process,
Entropy expects Entropy23TM to be an important
technology in the global effort to decarbonize. Entropy
intends to pursue a dual path business model, with some projects to
be developed as owner/operator/carbon manager, and other projects
to be developed as technology provider/licenser with associated
carbon royalties.
Executive Team Appointment
Jason Chadwick has been appointed
Vice President of Business Development of Entropy, responsible for
developing relationships with third-party emitters and developing
the commercial agreements and structures required to navigate the
full spectrum of the complex carbon capture business. Jason
has 25 years of experience in Western
Canada's upstream energy industry. Jason's prior experience
includes serving as a Senior Vice President, Commercial for Modern
Resources, a private E&P company recognized for its industry
leading methane abatement and other low emissions technologies,
where he was responsible for all corporate commercial and business
development functions.
Ongoing Project Development
Scoping design, engineering, and subsurface evaluations are
underway for each of the four projects under Memoranda of
Understanding ("MOUs" announced June 2,
2021), with varying degrees of advancement. These
MOUs, totaling approximately 1 million tonnes per annum ("TPA")
under development, are in addition to the previously announced
project at the Advantage Glacier Gas Plant (182,000 TPA in two
phases), where all major equipment required for phase 1 has been
purchased and preparations for construction are underway.
Entropy continues to engage with numerous other third-party
emitters in a variety of industrial sectors and commercial
applications such as power generation, cement production and gas
compression, with a significant pipeline of additional potential
projects under development.
Entropy is committed to commercial deployment of
state-of-the-art technologies in carbon capture and storage ("CCS")
and in other clean energy opportunities, building on the combined
strengths of Advantage, Allardyce Bower Consulting Inc. ("ABC") and
our advisors from CETRI.
About Entropy Inc:
Entropy is a privately-owned company (Advantage 90% and ABC 10%),
founded to apply sophisticated science and engineering to
commercialize CCS. Entropy's technology is expected to deliver
commercial profitability at a carbon price below CAN$50/tonne,
using proprietary MCCS technology. Entropy intends to deploy this
technology in the global effort to reduce and eventually eliminate
carbon emissions.
About Advantage Energy Ltd.:
Advantage is a low-carbon energy producer focused on developing its
high quality Montney resources.
Advantage's owned infrastructure, top-tier cost structure and
capital efficiency provide a strong foundation for sustainable,
disciplined production growth. With modern, low emissions-intensity
assets and the Glacier CCS asset, Advantage continues to proudly
deliver clean, reliable and sustainable energy, contributing to a
reduction in global emissions by displacing high-carbon fuels.
Advantage's common shares trade on the Toronto Stock Exchange under
the symbol AAV with its head office in Calgary, Alberta, Canada.
About Allardyce Bower Consulting Inc.:
ABC is a Calgary-based
engineering, procurement and construction management company with
leading expertise in several aspects of gas processing and
modularization. ABC's principals Brent
Allardyce and Rick Bower
provide over 75 years of related experience in designing,
troubleshooting, and operating gas processing facilities with
innovative professional services and unique capabilities.
About Clean Energy Technologies Research Institute (CETRI):
CETRI centralizes all low-carbon and carbon-free clean energy
research activities at the University of
Regina. Areas of research focus include decarbonization and
zero-emission hydrogen technologies, carbon capture and
utilization, and waste-to-renewable fuels and chemicals. Bringing
together one of the most dynamic teams of researchers, industry
leaders, innovators, and educators in the energy field, CETRI's
mission aligns with the Environment & Climate Action areas of
focus in the University of Regina's
Strategic Plan.
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,
Entropy23TM's ability to impact the energy inputs
required to capture carbon dioxide from a flue-gas stream and the
required costs of equipment; anticipated timing of the CETRI
technology development program testing phases and the results
thereof; the final testing phase's ability to produce in-situ,
verifiable costs and energy intensity metrics for commercial
applications and the timing thereof; expectations that
Entropy23TM will be a leading technology in the global
effort to decarbonize; the benefits to be derived from the MOUs and
the expectation that they will result in definitive agreements and
completed CCS projects; expectation that the potential CCS projects
as described will capture carbon dioxide TPA as disclosed;
expectation that there is a significant pipeline of additional
potential projects in development; expected benefits of Entropy's
technology; Entropy's strategies and plans for its technology and
Entropy's focus; and Advantage's strategy and focus. Advantage's
and 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 Advantage or Entropy will derive from
them.
These statements involve substantial known and unknown risks
and uncertainties, certain of which are beyond Advantage's and
Entropy's control, including, but not limited to: 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 ability to access
sufficient capital from internal and external sources.
With respect to forward-looking statements contained in this
press release, Advantage and Entropy have made assumptions
regarding, but not limited to: 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; timing and amount of net capital expenditures;
the impact of increasing competition; that Advantage and Entropy
will have sufficient cash flow, 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.
While encouraging, test result data should be considered to
be preliminary until the final phase of the CETRI technology
development program has been completed. Such test results are not a
guarantee of long-term performance characteristics.
Management has included the above summary of assumptions and
risks related to forward-looking information above in order to
provide shareholders 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 Advantage and Entropy 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 press release and neither Advantage or
Entropy disclaims 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 Oil & Gas Ltd.