The CGF will guarantee that Brookfield-backed Entropy receives at least $86.50 for every tonne of carbon it successfully captures over the next 15 years. The $15-billion federal fund will also give Entropy, a subsidiary of oil and gas producer Advantage Energy, $200 million in debt financing that the agency can later convert into equity. (The Logic) 

Talking point: The CGF’s carbon price guarantee—ensured through carbon credit offtake commitments (CCOs)—is the first out of a $7-billion pool the federal government allocated the agency in its fall fiscal update. CCO put a floor on the price of carbon as a way to incentivize investments in lower-emissions technologies like carbon capture and storage (CCS). If the price for carbon credits falls below the $86.50 threshold, taxpayers will take the loss. Entropy also announced Wednesday it was moving ahead with the next phase of its flagship Glacier project, a natural gas facility that will use CCS to sequester an estimated 185,000 tonnes of CO2 per year. Asset management giant Brookfield had previously committed up to $300 million to Entropy, which would make it the company’s largest shareholder.