NEWS FILE PHOTO
The Methanex facility in Medicine Hat is shown.
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Methanex announced in a release late Wednesday that it has chosen its local methanol production plant for engineering a carbon emissions abatement equipment.
The $100 million project, done in partnership with Calgary-based clean-tech company Entropy, could create 200 construction jobs, then several permanent positions afterward while lowering carbon compliance fees and boosting production, company officials said.
“We’re excited to advance this first-of-its-kind carbon capture solution in North America in collaboration with Entropy,” said Mark Allard, a senior vice-president with Vancouver-based Methanex. “This project exemplifies Methanex’s commitment to reduce our global GHG emission intensity by 10 per cent by 2030 and to advance at least one (low-carbon solution) project into Pre-FEED (engineering) in 2024.”
The News first reported that the global methanol producer was considering CCUS as two of its production facilities earlier this year. The company was also evaluating a facility in Louisiana.
“This partnership … allows us to expand into carbon capture and utilization, reducing carbon emissions but also increasing productivity for our partners,” said Entropy president Mike Belenkie.
This week’s announcement comes after federal tax credit incentives for CCUS comes into effect in July and a corresponding number of announcements from companies during the Calgary Stampede last week.
Comments from Premier Danielle Smith are included.
“This will not just benefit the region, it will benefit Alberta and the world,” said Smith, also the MLA for Brooks-Medicine Hat.
“Alberta is proud to be a leader in CCUS technology and this project highlights our work in CCUS and energy diversification.”
The works will be designed to capture 146,000 tonnes of carbon dioxide per year – valued at about $9.5 million, under current carbon levy rates set under the provincial TIER program that works in tandem with federal levies.
A portion of emissions will be put back into production lines resulting in a 50,000 tonne production increase, and the remainder “permanently sequestered safely underground.”
Officials with the City of Medicine Hat, which is pursuing the development of a regional carbon sequestration hub west of the city, are quoted in the release, but it is not clear from the release what part, if any, the city has in the agreement.
Last month, council gave approval for administrators to finalize commercial agreements with an unnamed party, but it’s unclear if Methanex is the unnamed party, or if the city has a part
“We’re excited about this project’s potential to create jobs and ensure long-term economic resilience in southeastern Alberta,” said Coun. Ramona Robins, the current deputy mayor. “It aligns with our strategy for energy transition as well as our vision to make Medicine Hat a local carbon capture hub.”
Methanex, CF Industries, and some other industrial interests in the region have expressed support for the city-led initiative. Municipal administrators have said CCUS could be critical for lowering the carbon footprint of the city’s electric power plant.
[Editor’s Note: This version of the article corrects the estimated cost of the project to C$100 million. A previous version included an incorrect figure.]
