Glacier Phase 2 provides a new 15 MW co-generation installation with fully integrated carbon capture, transportation and storage for both the co-generation gas turbine and approximately 30 MW of reciprocating engines that drive compression at Advantage’s Glacier Gas Plant in Saddle Hills County, Alberta.
“We are proud of the work our team and service providers have done to safely bring Glacier Phase 2 online right on schedule,” said Sanjay Bishnoi, Chief Executive Officer of Entropy. “This first-of-a-kind asset will provide reliable, baseload, low-carbon power to our customer, Advantage, and sell merchant power to the AESO system. As demand for reliable, low-emission electricity grows, we believe Glacier Phase 2 will mark an important milestone for industry.”
All major construction is complete and all equipment at the facility has been commissioned. Key highlights of Glacier Phase 2 project execution and completion include:
A 15 MW Solar T130 turbine has been installed, representing a key step in delivering reliable low-carbon power from natural gas with CCS.
Electricity is being sold to Advantage under a 15-year power purchase agreement for 6 MW at a price of $85/MWh. A third-party process engineering firm has calculated the design-basis carbon intensity of the electricity at 84 kg/MWh, using a lifecycle assessment approach.
Glacier Phase 2 will materially reduce emissions from the Glacier Gas Plant while supplying low-carbon power to site operations and exporting surplus power to the Alberta Electric System Operator (AESO) grid.
All material unabated emissions sources at the Glacier Gas Plant will be captured using Entropy’s industry-leading CCS technology, targeting CO2 removal rates of over 90%.
Including prior phases, total CO2 capture capacity is targeted on 45 MW from eleven gas fired engines (30 MW) plus one gas-fired power generation turbine (15 MW) for capture and sequestration of 192,000 tonnes per annum (tpa) of CO2.
Over 250,000 exposure hours were worked without a serious incident, completing extensive work at heights and executing multiple critical litis safely and successfully.
With commissioning complete, Entropy is now bringing the facility to steady-state operation and expects to publish verified performance data for Glacier Phase 2 in the coming months. That data will be measured and reported through EntropyIQ, the Corporation’s real-time carbon measurement, performance and accounting system that quantifies captured CO2 from process measurements and traces every tonne from flue-stack to wellhead.
“It’s great to see Entropy’s success with Glacier Phase 2 operating as the first post-combustion CCS system on a gas turbine for power generation. Their technology and business model provide a low-carbon solution that is highly scalable to help meet today’s growing demand for clean, firm power,” said Jarad Daniels, CEO of the Global CCS Institute.
“It’s encouraging to see this phase of the project online, demonstrating that CCS can support both climate goals and long-term competitiveness.”
Over the past year, there have been several announcements from provincial and federal governments that help provide greater clarity on the role of emissions regulations and carbon policy that underpin CCS in reducing industrial emissions in Canada. Many announced policy positions are essential to keeping the cost of delivering CO2 reductions at a minimum for industry and consumers.
This includes the Federal Carbon Capture Utilization and Storage Investment Tax Credit (CCUS ITC), the Alberta Carbon Capture Utilization and Storage Investment Program (ACCIP), and the Saddle Hills County Carbon Capture Tax Incentive Bylaw. The CCUS ITC and ACCIP are critical components of the economics supporting Entropy's project portiolio.
Entropy has invested more than $250 million across multiple CCS projects in Canada that are currently progressing through the NRCan and CRA review process although timelines have been significantly longer than anticipated and budgeted, with no ITC or ACCIP proceeds received to date.
Entropy said it is commited to working with the federal departments administering the CCUS ITC to improve administration; however, these delays result in increased financing costs, reduced certainty for project developers and investors, and weakened effectiveness of the incentive. As Canada looks to advance larger-scale carbon capture projects, predictable and timely administration of the CCUS ITC program will be essential to supporting future investment decisions and atracting capital.