Carbon capture and sequestration specialist Entropy is growing its portfolio by acquiring interest in three carbon hubs in Canada’s Saskatchewan and Alberta, according to a June 23 news release.

The Advantage Energy subsidiary said it entered a deal with an unnamed Canadian oil and gas producer to acquire the Belle Plaine and North Battleford carbon hubs along with a 50% interest in the Rolling Hills carbon hub for CA$20 million (~US$14.6 million) plus contingent payments of approximately CA$15 million (~US$11 million). The contingent payments are based on commercial milestones of various projects.

The all-cash transaction, which is expected to close in July subject to certain conditions, includes subsurface assets, associated commercial contracts, licenses and other intellectual property.

“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.”

The company said it plans to fund the acquisition through the issuance of convertible debentures under its aggregate $500 million strategic investment agreements with Brookfield Asset Management and the Canada Growth Fund, with no capital to be contributed by Advantage.

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