Remarks by the Deputy Prime Minister welcoming the Canada Growth Fund’s first carbon contract for difference

Calgary, Alberta - December 20, 2023

I want to first acknowledge that we are gathered on the traditional territories of the people of the Treaty 7 region in southern Alberta and the Métis Nation of Alberta, Region 3.

I am so glad to be here today with Mike Belenkie, CEO of Entropy, with the incredible team at Entropy, and with Rebecca Schulz, Alberta’s Minister of Environment and Protected Areas. Rebecca and I have a history together because we worked together on the Early Learning and Childcare deal for Alberta. And kids and families in Alberta are benefitting from fee reductions of as much as $10,000 per child thanks to that agreement.

I am really glad to be here in Calgary to celebrate another historic moment for our country—and for workers in Alberta.

During my last visit to Calgary in October, I announced the Canada Growth Fund’s first-ever investment in an excellent company called Eavor Technologies.

The Canada Growth Fund is a pillar of our government's economic plan. The Canada Growth Fund is led by some of PSP Investments' top Canadian investors, and will invest in Canadian companies, support their development, and help Canada attract our share of the trillions of dollars in private capital waiting to be invested in the global economy of tomorrow. But more importantly, it will help create good jobs for Canadians.

The first announcement we made in October was an important moment for Calgary, for Alberta, and for our whole country.

Today is another historic milestone.

I am incredibly proud to announce that the Canada Growth Fund is investing $200 million in Entropy—a world-leading carbon capture and sequestration company headquartered here in Calgary.

This investment is about great jobs—great careers—for people here in Alberta. It will help support 1,200 jobs, including 240 full-time, permanent jobs based here in Alberta.

This investment is going to help Entropy scale-up their signature carbon capture technology and reduce emissions at Advantage Energy’s gas plant in the Peace Country. It will reduce emissions there by 2.8 million tonnes over 15 years.

And the investment is going to help Entropy commercialize their world-leading technology for use at projects here in Canada and around the world.

Now, why am I describing this as a historic announcement?

That’s because in addition to the $200 million investment in Entropy, the Canada Growth Fund is providing to Entropy the very first in the world carbon credit offtake agreement of its kind.

As a type of carbon contract for difference, carbon credit offtake agreements backstop the price of carbon, which helps a business like Entropy make the long-term investment decision it needs to grow and create good jobs.

Essentially, carbon contracts for difference and carbon credit offtake agreements reduce risk for businesses investing in clean technologies by guaranteeing the price of carbon or carbon credits for a fixed period of time, regardless of the actual market price. This tool provides certainty for people like Mike and his team, and it allows them to unlock the final investment decisions for great projects like this one.

Through this unique agreement with Entropy, the Canada Growth Fund will backstop the price of carbon credits for the next 15 years at a precedent-setting price of $86.50 per tonne.

This kind of innovative policy—and innovative, world-leading investing—is exactly why we created the Canada Growth Fund.

This is something that no other country in the world is doing.

It is making Canada a clean technology leader. It is encouraging companies like Entropy to be able to stay here in Canada—to invest in big projects here in Canada.

And most importantly, it is creating hundreds of great careers for some of the great people that you see here in this room today.

And this is just the start.

This is the third time I have been back home in Alberta in eight weeks—and each time, it has been to announce a major investment in Alberta.

On October 25th, I was here in Calgary announcing the Canada Growth Fund’s inaugural investment in Eavor Technologies. Eavor said that investment is what made it possible for Eavor to stay in Canada and grow its business here.  And that is exactly what the Canada Growth Fund is about.

On November 29th, I was with Premier Danielle Smith in Fort Saskatchewan announcing that Dow would be making a historic multi-billion dollar investment in Canada, thanks to our investment tax credits.

Crucially, those investment tax credits come with labour conditions that ensure that the Dow project and others like it will create good-paying jobs and apprenticeship opportunities. 

And today, we are announcing another truly historic landmark investment here at Entropy with the world’s first carbon credit offtake agreement. And as a bonus, the project will also benefit from our CCUS Investment Tax Credits.

These historic investments are concrete proof in how much we can accomplish when we work together. 

I'm really happy for Mike and the entire Entropy team, and I'm really excited about what the future holds for this incredible company and the remarkably talented people who have helped make Entropy a true success story in Canada.

I am very proud that, through the Canada Growth Fund, our government is helping Entropy grow and become a global leader in developing a technology that will play an important role in the fight against climate change. 

Because this is what our government’s economic plan is all about.

Building Canada’s future economy.

Creating great careers for people in Alberta right now.

And supporting innovative, creative, world-leading companies like Entropy which are leading the way.

Thank you very much.