CGF announces strategic investment in Entropy
On December 20, 2023, Canada Growth Fund Inc. ("CGF") and Advantage Energy Ltd. ("Advantage") announced that CGF entered into a strategic investment agreement with Entropy Inc. ("Entropy"), a Calgary-based developer of technologically-advanced carbon capture and sequestration ("CCS") projects with the potential to significantly reduce emissions in Canada and worldwide. Entropy previously completed its strategic C$300 million investment agreement with Brookfield Renewable, via the Brookfield Global Transition Fund, to scale up the deployment of Entropy's CCS technology globally. Brookfield Renewable will continue to invest the balance of its existing C$300 million hybrid security into the business, by which point it would be the largest shareholder and control Entropy.
CGF’s strategic investment agreement with Entropy builds on this strong foundation and provides greater revenue certainty to accelerate Entropy's major investments in Canada. CGF agreed to a C$200 million investment in Entropy coupled with a fixed-price carbon credit purchase agreement ("Carbon Credit Offtake Commitment" or "CCO") of up to one million tonnes per annum. This strategic growth partnership represents an important new investment in Canadian carbon markets. The features of the CCO—notably its large scale and its long-term fixed-price—represent a global first in compliance markets. This financeable structure helps to de-risk and accelerate private CCS investment by establishing carbon price certainty for Canadian projects.
Further information can be found on Canada Newswire’s website.
Entropy is a privately-owned company, founded by Advantage to apply sophisticated science and engineering to commercialize CCS. Entropy's technology is expected to deliver commercial profitability at a carbon price of US$40/tonne, using proprietary modular carbon capture and storage technology.
CGF is a C$15 billion independent and arm’s length public fund that will help Canada to speed up the deployment of technologies in its efforts to reduce emissions, transform its economy and support the long-term prosperity of Canadians.
Advantage, headquartered in Calgary, Alberta, 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 carbon capture and sequestration asset, Advantage continues to proudly deliver clean, reliable and sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels.
Brookfield Global Transition Fund I is the largest fund in the world focused on the energy transition. It targets investment opportunities that will help companies decarbonize their operations.
Brookfield Renewable operates one of the world's largest publicly traded, pure-play renewable power platforms. Its portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals approximately 21,000 MW of installed capacity and an approximately 62,000 MW development pipeline.