Canada Growth Fund announced its intention to invest $200 million in Calgary-based carbon capture and sequestration (CCS) project developer Entropy.
According to the official announcement, the investment is based on the company’s potential to play an important role in significantly reducing CO2 emissions in Canada and around the world.
In addition to the $200 million investment in Entropy, Canada Growth Fund (CGF) has also agreed to buy up to one million metric tons of carbon dioxide per year for a fixed price, as per a signed Carbon Credit Offtake Commitment (CCO).
The partnership represents a major step in the development of Canadian carbon markets, and the CCO with a long-term fixed price is a first-of-its-kind in compliance markets on a global scale.
Experts say that this new partnership helps bring about more carbon price certainty for Canadian CCS projects, and can therefore boost private investments in the sector.
Patrick Charbonneau, President and CEO of Canada Growth Fund Investment Management Inc. (“CGF Investment Management”) commented on the new agreement:
“With its abundance of natural resources, access to high-quality geological storage, and sophisticated engineering know-how, Canada is the best place in the world to build a CCS industry.”
CGF’s investment strategy has two main pillars, one of which is to support technologies and projects that hold great promise of reducing Canada’s carbon dioxide emissions.
And the other is to help Canadian cleantech companies scale so that they can provide value for the country’s citizens.
As a Canadian-based carbon capture company with its innovative, modular CCS solution, Entropy is in perfect alignment with both of those pillars.