(TSX: AAV)
CALGARY,
AB, July 5, 2022 /CNW/ - Entropy Inc.
("Entropy" or the "Corporation"), a subsidiary of Advantage Energy
Ltd. ("Advantage"), is pleased to announce that it has begun
commissioning its first post-combustion carbon capture and storage
("CCS") project at the Glacier Gas Plant in Alberta, effective June
27, 2022. Commissioning of the first phase (47,000 tonnes
per annum of CO2e ("TPA")) is expected to take several weeks with
"first carbon" expected to be injected into permanent geological
storage within four weeks. Entropy believes that this will be
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
patent-pending Modular Carbon Capture and StorageTM
("MCCSTM") process equipment in addition to the
installation of all waste heat recovery equipment required for the
full 200,000 TPA project. The final total installed cost of Phase 1
is expected to be approximately $31
million, which is approximately 10% higher than Entropy's
original budget as a result of recent inflation, primarily in steel
and copper pricing.
Entropy will begin by gathering performance data on the
proprietary process design using standard MEA (monoethanolamine)
solvent for approximately one month prior to switching to its
patent-pending Entropy23TM solvent for complete
performance benchmarking. Operational updates on Phase 1
performance will be announced as various milestones are
achieved.
Final Investment Decision Reached for Glacier Phase
1b
Entropy is pleased to announce final investment decision ("FID")
for Glacier Phase 1b, which is
designed to capture and store an additional 16,000 TPA at an
expected cost of approximately $8
million. Phase 1b will be the
first deployment of Entropy's Integrated Carbon Capture and
StorageTM ("iCCSTM") product, whereby a new
5,000 horsepower gas compressor package will come directly from the
fabricator with built-in carbon capture equipment, reducing energy
intensity and total installed cost significantly below the cost of
a retrofit installation. Phase 1b
equipment is being 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 FID by the fourth quarter of 2022 and come
on-stream by the end of 2023. Once complete, Entropy expects to
capture approximately 200,000 TPA of CO2 (over 90% of total
emissions) from the facility 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. have made substantial progress
on preparing to install MCCSTM at Leismer with FID for
the first phase expected during the third quarter of 2022. 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 being finalized in the coming month. This project
relies on a local geological storage zone so construction will be
predicated on timely regulatory approvals. This is the first
commercial CCS project on a once-through steam generator ("OTSG")
which are widely deployed in thermal oil operations globally.
Entropy23TM Testing Results
Long-term testing of Entropy23TM solvent, by the
University of Regina's Clean Energy
Technologies Research Institute ("CETRI"), has thus far provided
the following key data points on Entropy23TM:
- confirmed superior degradation characteristics versus MEA
- average liquid mass transfer coefficient (KL) of
426% higher than MEA at 110oC, potentially increasing
the capacity of a regeneration tower by more than four times
- average gas mass transfer coefficient (KG) indicated
that the contactor tower segment height may be reduced by
approximately 50% versus one designed to use MEA
With these test results and imminent data gathering at the
Glacier MCCSTM facility, Entropy will be able to
integrate new learnings into the final designs of future projects,
helping us further reduce capital costs, operating costs and energy
intensity.
Commercial Update
Entropy's pipeline of CCS projects continues to grow rapidly. In
addition to the short- and medium-cycle CCS projects that have been
previously announced, Entropy has been formally engaged in various
capacities, including pre-FEED analysis and project evaluations,
for five separate investment-grade counterparties on global-scale
projects. In aggregate, Entropy is approaching 10 MMTPA of projects
under development in different levels of maturity and different
forms of engagements.
About Entropy Inc:
Entropy is a privately-owned company, founded by Advantage
Energy Ltd. to apply sophisticated science and engineering to
commercialize CCS. 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, the anticipated timing of the commissioning of the
first phase of the Glacier project; Entropy's expectations of when
"first carbon" will be injected into permanent geological storage;
Entropy's belief that the Glacier project will be the world's first
commercial project to capture and sequester carbon from the
combustion of natural gas; the anticipated installation costs of
Phase 1; that Entropy will gather process performance data using
MEA for approximately one month prior to switching to its
patent-pending Entropy23TM solvent for complete
performance benchmarking; that Entropy will provide operational
updates on Phase 1 performance as various milestones are achieved;
the TPA expected to be captured and stored at Glacier Phase
1b and the anticipated costs thereof;
that Glacier Phase 1b will reduce
energy intensity and total installed cost significantly below the
cost of a retrofit installation; the anticipated timing that 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 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 and the anticipated costs in connection therewith; that the
results from the long-term testing of Entropy23TM will
be integrated into the final designs of future projects and the
anticipated benefits to be derived therefrom including that the
same results will accrue on commercial applications; the
anticipated benefits to be derived from Entropy's test results and
the additional data gathered at Glacier; and Entropy's focus,
strategies and plans for its technology. 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
installation costs of Phase 1 will not be greater than anticipated;
that Entropy will achieve its anticipated Phase 1 performance
milestones; that Entropy will receive the regulatory approvals
required in connection with the Leismer project and the anticipated
timing thereof; that Entropy's existing engagements, including
pre-FEED analysis and project evaluations, will lead to completed
projects; that Entropy's CCS projects will reach final investment
decision; 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: that the commissioning of the first
phase of the Glacier project and the injection of the "first
carbon" into permanent geological storage may not occur when
anticipated, or at all; that the Glacier project may not be the
world's first commercial project to capture and sequester carbon
from the combustion of natural gas; that the installation costs of
Phase 1 may be greater than anticipated; that Entropy may not
achieve its anticipated Phase 1 performance milestones; 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 installed cost below the cost of a
retrofit installation; the risk that 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's
test results and the additional data gathered at Glacier may not
drive engineering designs or result in lower capital costs or
improved energy efficiency and associated operating costs; the risk
that Entropy's engagements, including pre-FEED analysis and project
evaluations, may not lead to completed projects; the risk that
there may not be a significant pipeline of projects available to
Entropy; 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.