Entropy, a subsidiary of Calgary’s Advantage Energy, is expanding its carbon capture and storage (CCS) presence across Western Canada with a $35 million acquisition of three carbon hubs.
The company announced it has entered into a definitive agreement to acquire an interest in a portfolio of subsurface carbon storage assets and associated intellectual property from an unnamed Canadian oil and gas producer. The $20 million all-cash deal includes an additional $15 million in contingent milestone payments. The acquisition is expected to close in July 2025, pending customary conditions.
The acquired assets include the Belle Plaine and North Battleford carbon hubs in Saskatchewan, and a 50% interest in the Rolling Hills carbon hub in southern Alberta. The transaction also includes key commercial contracts and licenses tied to the projects. TD Securities acted as exclusive financial advisor to the seller.
Funding for the acquisition will come from Entropy’s existing $500 million strategic investment agreements with Brookfield Asset Management and the Canada Growth Fund. Notably, no capital is being contributed by Advantage Energy, and the debt will be non-recourse to the parent company.
“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.”
Bishnoi added that the newly acquired hubs will allow Entropy to build new customer relationships and enable CO₂ transport and storage via its expanding infrastructure.
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