By The Canadian Press on December 20, 2023.
CALGARY – A Calgary carbon capture company has signed a first-of-its-kind carbon offtake agreement with the federal government.
The federal Liberal government promised in its recent fall economic statement to introduce a carbon contracts for difference framework in order to give certainty to companies considering investing in emissions reducing technology.
Carbon contracts for difference reduce the risk for businesses investing in clean technologies by guaranteeing the price of carbon for a fixed period of time.
The government said Wednesday it has signed a first contract with Entropy Inc., which has developed a unique modular carbon capture, utilization and storage technology.
The agreement will see the Canada Growth Fund provide Entropy with a large-scale, long-term, fixed price carbon credit offtake framework.
Many environmental groups have said this type of agreement has long been the missing piece when it comes to encouraging private sector investment in decarbonization.
This report by The Canadian Press was first published Dec. 20, 2023.