April 2, 2021 - Advantage Oil & Gas Ltd. ("Advantage" or the "Corporation") and Allardyce Bower Consulting Ltd. ("ABC") have announced they have jointly developed breakthrough carbon capture and storage technology capable of commercial profitability at a carbon price below /tonne. The first deployment of the technology will occur at Advantage's Glacier Gas Plant near and is expected to enter service by .
The Modular Carbon Capture and Storage ("MCCS") technology can be retrofitted to most point-source industrial emissions, including sectors that are difficult to decarbonize like power generation, blue hydrogen, LNG, oil and gas processing, and production of cement and steel. In partnership with ABC, Advantage has established Entropy Inc. ("Entropy"), which will own the technology with the intent of deploying it widely in the global effort to decarbonize.
Entropy's MCCS designs include several key innovations from a research and development program that has been underway for several years, including collaboration with an accredited Canadian university. Entropy is seeking numerous patents on new technologies required to reduce the cost of capturing post-combustion carbon dioxide and storing it permanently, including innovative process enhancements and refinements that were developed over a decade of operational experience with a pre-combustion carbon capture and storage at the Glacier Gas Plant. The modular technology is extremely versatile, applicable to projects as small as 8,000 tCOe/year allowing decarbonization to occur in easily financed increments. There is no upper limit to the scalability for larger projects. MCCS recovers approximately 90% of carbon emissions.
Highlights of the first commercial project at the Glacier Gas Plant:
In addition to the MCCS project at Glacier, Entropy is pleased to announce it has been contracted to design a third-party MCCS project in , and has been engaged to evaluate several additional projects in multiple industrial sectors in and the United States. Entropy intends to develop and deploy MCCS projects world-wide, employing a full suite of expertise including project assessment, engineering procurement and design, storage reservoir engineering, carbon utilization engineering, compliance-based carbon offset marketing, carbon finance and regulatory expertise. While exploring strategic options to expand the business, Entropy will be led by (Director, President and CEO) and (CFO) under a services agreement while retaining their existing roles at Advantage.
Using Entropy technology, industrial emitters will have the opportunity to reduce emissions in stages to achieve targeted outcomes, and the MCCS design is specifically suited to achieving these goals while moderating the required pace of investment and delivering returns via carbon revenue.
About Advantage Oil & Gas Ltd.
Advantage Oil & Gas Ltd. is a low-carbon energy producer focused entirely on developing its significant position in the resource play. Advantage's owned infrastructure, top-tier cost structure and capital efficiency provide a strong foundation for sustainable, disciplined production growth. Advantage's land holdings consist of 216 net sections (138,240 acres) of liquids-rich lands at Glacier, , Progress and / . Management estimates a future drilling inventory of more than 1,400 horizontal well locations. With modern, low emissions-intensity assets and the Glacier carbon capture and sequestration asset, Advantage continues to proudly deliver clean, reliable and sustainable energy, contributing to a reduction in global emissions by displacing high-carbon fuels. Advantage's common shares trade on the Toronto Stock Exchange under the symbol AAV with its head office in .