We have invested in Entropy, a Calgary-based developer of technologically advanced carbon capture and sequestration projects with the potential to significantly reduce emissions globally.

We believe this technology will play a meaningful role in decarbonizing carbon-intensive sectors, including the oil and gas industry in Western Canada. We are developing partnerships to drive progress in supporting these industries.

Late in 2023, Canada Growth Fund (CGF), a Canadian public investment vehicle that aims to attract private capital to build Canada's clean economy, invested $200 million in Entropy and became its customer by entering into a fixed-price carbon credit purchase agreement of up to one million tonnes per annum.

This was a highly strategic investment agreement, marking a milestone for our portfolio company, Entropy. This structure helps to de-risk and accelerate our investment by establishing carbon price certainty for the project over the next 15 years, setting a foundational price in the Canadian carbon market.

Entropy aligns well with CGF's goals: it is a Canadian-based carbon capture and sequestration company with an innovative technology solution and a skilled team of experts focused on expanding the use of this technology. Entropy's modular carbon capture and storage technology is relevant across Canada's carbon-intensive industries, which represent an important challenge and opportunity for Canada to tackle as it works towards its emissions objectives.

This illustrates how partnership, a key theme for Brookfield, enables us to drive climate solutions forward.