Federal Finance Minister and Deputy Prime Minister Chrystia Freeland provided more details on the tax credit to incentivize carbon capture and storage during her economic statement in November.
In her economic statement in November, Deputy Prime Minister Chrystia Freeland promised carbon contracts for difference to resolve these obstacles and stimulate investment in CCS projects.
The FCC thus guarantees Entropy that it will purchase up to 185,000 tonnes per year of carbon credits from the Glacier capture and storage project for 15 years, at a price of $86.5 per tonne.
< p class="StyledBodyHtmlParagraph-sc-48221190-4 hnvfyV">The agreement also provides for the purchase of up to one million tonnes per year of carbon credits from other Entropy projects.
It’s truly unique in Canada. We find that it is a structure that balances the risk between investors and the Canada Growth Fund, underlines Mr. Charbonneau. It is a structure that accelerates a technology, which allows Entropy to develop new projects.
We are confident that other carbon capture projects in Canada could see this structure as interesting and therefore make an investment decision.
A quote from Patrick Charbonneau, CEO of the Canada Growth Fund
The company Entropy also announced that this agreement allows it to move forward with the expansion of its Glacier carbon capture and storage project.
Located in northwest Alberta, this pilot project already captures and stores 63,000 tonnes per year of CO2 from a natural gas facility. The second phase will double this volume.
The company is also turning its attention to the development of other projects in Canada. It had abandoned the country in favor of the United States, whose Inflation Reduction Act offered more advantageous incentives.
According to Patrick Charbonneau, this first contract with a carbon capture and storage company won't be the last. Environmental organizations and academics have criticized the technology as too expensive and unreliable to large scale.
Tiphanie Roquette (Consult the profil)Tiphanie RoquetteFollow