Entropy Inc., a subsidiary of Advantage Energy Ltd., has signed a definitive agreement to acquire key carbon hubs from a Canadian oil and gas company for CA$20 million (~$14.6 million), plus up to CA$15 million (~$11 million) in performance-based payments.
The acquisition includes three carbon hub sites: Belle Plaine and North Battleford in Saskatchewan, and a 50% stake in the Rolling Hills hub in southern Alberta.
The deal, set to close in July 2025 pending standard conditions, includes associated commercial rights, licenses, and intellectual property. TD Securities advised the seller exclusively.
Entropy will fund the acquisition through convertible debentures backed by its $500 million strategic investment agreements with Brookfield Asset Management and the Canada Growth Fund. No capital will be required from parent company Advantage.
The company continues to advance its carbon capture efforts at the Glacier gas plant, with Phase 1b maintaining over 90% CO2 capture efficiency and a runtime exceeding 98%.
Construction on Glacier Phase 2 is on track to start this summer, with full commercial operations expected by Q2 2026 — remaining within 10% of the initial budget despite inflationary pressures.
“We are excited to expand Entropy’s footprint into Saskatchewan and strengthen our commitment to the carbon capture and sequestration business in Alberta,” said Entropy CEO Sanjay Bishnoi.
“This acquisition marks a significant step in our commercial growth. We are also excited to build relationships with new customers and advance existing infrastructure projects that will enable CO2 to reach these newly acquired storage hubs.”
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