Medicine Hat Methanol Carbon Capture

The Methanex Medicine Hat carbon capture project is a proposed CCUS facility at Methanex Corporation's methanol plant in Medicine Hat, Alberta. In July 2024, Methanex and Entropy Inc. entered an agreement to fund a Preliminary Front-End Engineering and Design (Pre-FEED) study to deploy Entropy's proprietary modular post combustion carbon capture technology at the site, capturing CO₂ from the plant's combustion emissions. The system, with an estimated investment of around CAD $100 million, is designed to capture roughly 400 tonnes of CO₂ per day. A portion of the captured CO₂ would be used as feedstock to produce about 50,000 tonnes of additional methanol per year, with the remaining CO₂ permanently sequestered underground. Under the proposed structure, Entropy would construct and own the capture equipment adjacent to the facility, while Methanex would supply utilities, build the tie ins, and operate the unit once commissioned. The Pre-FEED study is evaluating the project's economic viability, including access to pore space, carbon offtake agreements, municipal alignment, and funding from provincial and federal carbon reduction programs. Methanex frames the project as supporting its target to reduce global GHG emission intensity by 10% by 2030. Underground storage in the region is being advanced separately through Project Clear Horizon, the Medicine Hat CCS hub now led by Imperial Oil.