What are the effects of methane emissions? That’s the multi-million dollar question in the world’s battle over global warming as methane was often overlooked in the climate change conversation for decades. 

And this could be dangerous because the gas is so much more powerful than carbon dioxide in warming the planet. 

Methane is a “short-lived climate forcer” (SLCF), meaning its effect is short-lived, about 12 years, but is particularly destructive. In fact, one ton of methane has about 80x the warming potential heat-trapping ability of a tonne of CO2.

Experts further say that methane emissions are responsible for about 30% of today’s climate change. The gas also poses health hazards to people, which can be deadly. 

Yet, the trends of methane emissions in the U.S. and worldwide are heading in the wrong direction.

The good news is that there’s a growing recognition among the scientific and political communities that reducing methane is critical in fighting climate change. 

Cutting methane emissions is the fastest option we have to slow the pace of global warming right away, even as we decarbonize the world’s energy systems.

It’s an opportunity we shouldn’t miss.

So, how can we address the methane problem and mitigate or reduce its emissions? This article will explain how focusing on the major sources of methane and providing some key players in the space. 

But before that, let’s first get to the basics by tackling what methane emissions do, why it’s bad for the environment, where it comes from, what sectors produce the most methane, plus some projections. 

Why Methane and What Does Its Emissions Do?

Why is methane bad for the environment?

Methane (CH4) is the second most abundant anthropogenic or human-related greenhouse gas (GHG) after CO2. As already explained, methane is a potentially destructive gas that has a more powerful near-term warming effect than CO2.

As a result, methane emissions contributed to about ⅓ of the increase in today’s GHG warming since pre-industrial times. And it’s growing faster than at any other time ever since record-keeping started in the 1980s.

Global Methane Emissions Trend Since the 1980s

Apart from driving climate change, methane also poses acute and chronic hazards to human health. 

The gas is explosive within certain ranges, presenting a safety hazard for people living in places with high methane concentrations. These particularly include areas around oil and gas facilities, coal mines, and some agricultural settings. 

Methane is also the primary contributor to ground-level ozone, a.k.a. smog formation, another GHG and harmful air pollutant. It’s often linked to various public health impacts such as asthma, weakened lung function, and cardiovascular diseases. 

Alarmingly, exposure to smog causes 1 million premature deaths each year. 

A study found that reducing 1 million tons of methane emissions may lead to a reduction of 240 to 590 premature deaths worldwide.

With these facts, it’s no surprise that individuals living near areas of high methane production have poorer health conditions and poorer quality of life. 

So, what, or we’d rather say, who do we blame for all the planet-warming effects and health dangers of methane? We’ll know by discovering where methane comes from and what sectors in the U.S. emit most of the gas. 

What Produces the Most Methane Emissions?

Over the past 200 years, methane concentrations in the air have more than doubled mainly because of human activities. These emissions have gone up alarmingly, which scientists think may be the biggest threat to keep global temperatures below 1.5°C.

There are two main culprits for releasing CH4 into the atmosphere – natural and anthropogenic sources. 

Natural sources are:

wetlands that are poorly managed are the biggest natural source, releasing methane from microbial decomposing activities 
reservoirs and ponds with high organic matter and low oxygen levels

Other small natural sources of CH4 emissions include oceans, sediments, wildfires, volcanoes, and termites.

Anthropogenic sources are:

Agriculture – livestock raising
Energy – oil and gas systems, coal mining
Waste management activities – landfills and wastewater treatment

The International Energy Agency estimated methane emissions from both sources as shown in the chart from its Global Methane Tracker.

Sources of Methane Emissions, Natural, and Anthropogenic

Source: International Energy Agency (IEA CC BY 4.0)

The largest anthropogenic source is agriculture, responsible for about a quarter of total CH4 emissions. The energy sector follows closely, which includes emissions from coal, oil, natural gas, and biofuels. Emissions from waste are the third biggest anthropogenic source. 

According to the U.S. Environmental Protection Agency (EPA), about 50-65% of total methane emissions come from anthropogenic or human activities. The agency also reported that CH4 accounted for 12% of all anthropogenic emissions in the U.S.

The following pie shows the US CH4 emissions per source, per EPA data.

U.S. Methane Emissions, By Source

Same with global emissions, the largest anthropogenic source of methane emissions in the US are agriculture (33%), combining enteric fermentation and manure management emissions. 

Natural gas and petroleum systems (29%) are the second biggest source of CH4 emissions in the country.

The gas is emitted during the production, processing, storage, transmission, distribution, and use of natural gas; while the production, refinement, transportation, and storage of crude oil releases the gas. Coal mining is also another significant source (6%). 

Methane is generated in landfills as waste decays and in the treatment of wastewater. Landfills are the third largest source of CH4 emissions (15%) in the US from decaying wastes. Domestic and industrial wastewater treatment also emits methane. 

Though CH4 emissions from oil and gas systems come second overall, they’re the largest industrial source of methane. That’s why President Joe Biden directed the EPA to issue regulations under the Clean Air Act to reduce the oil and gas industry’s methane emissions.

Plugging the Super-Emitters

The Biden administration has supercharged existing efforts by pouring billions to address the methane problem. 

The big effort, thus far, is to plug over 4 million abandoned and orphaned oil and gas (AOOG) wells spread across the 26 states. This well-plugging program is worth almost $5 billion under the Infrastructure Investment and Jobs Act 2022.

Most of the abandoned wells, about 22%, are found in Texas, while in Canada, 67% are in Alberta province. 

These abandoned, unplugged wells are leaking methane, estimated to be equal to burning over 16 million barrels of oil. But several studies reported that these emissions are likely underestimated due to uncertainties in the total number of the wells and their associated CH4 emissions. 

Good thing advanced technologies are now around to help track and detect methane emissions. Satellites, in particular, have helped scientists in detecting and measuring methane releases from leaks in pipes, venting, and other sources. 

These recent technological innovations have discovered sources that may go undetected for years. The recent case of Turkmenistan is a perfect example. 

Before this discovery, the Central Asian country wasn’t part of the countries that are known for being super-emitters of methane. Russia, the US, China, Brazil, India, Indonesia, and Mexico are the most popular super-emitters. No mention of Turkmenistan.

But satellite data analysis by Kayrros, a satellite-based tech company, showed that Turkmenistan has the most CH4 super-emitter events worldwide. The source is the two major leaking oil and gas systems in the country detected by NASA’s satellite monitoring device.

Similarly, in the US, NASA’s satellite program is partnering with a non-profit organization to track methane emissions at individual facilities. Their work produces high-resolution images that can locate sources of CH4 through their plumes. 

Here’s an example of a leaking gas line in an oil field in California detected by NASA’s AVIRIS-NG in 2020. 

Caption: A methane plume detected by NASA’s AVIRIS-NG. Source: NASA/JPL-Caltech

Right after the discovery, the operator confirmed the leak and repaired it right away. Who knows how much methane would continue leaking from the facility should it remain unknown.

And what about the rest of the leaking facilities from all over the world? They’re too many to handle all at once. 

Kayrros detected over 2,400 large CH4 leaks from fossil fuel extraction and landfills since 2019 as shown below.

Where Will the Growing Footprint Take Us?

With more satellite data becoming open to the public, it guides emissions reduction strategies and drives more investments. In most cases, it creates economic incentives for operators to repair leaking systems or plug the inactive ones.

But how about the future CH4 footprint that is projected to even grow bigger? 

Data from the Global Methane Initiative (GMI) shows that emissions from human activities by sector will rise by 2030.

As you can see above, emissions from each sector will grow until 2030. The biggest increase is from coal mine releases (17%) from 2020 to 2030. But the footprint from oil and gas systems is forecasted to also grow by 11% for the same period.

Methane, Can We Plug It In?

The good news? Yes, we can.

In fact, the IEA estimates that the oil and gas sector alone can reduce its methane emissions by 75% using technologies already available today. The better news is that ⅔ of it the reduction is possible with no net cost. 

The best part? All methane emissions caused by humans can be reduced by as much as 45% within the decade.

So how about literally plugging in those oil and gas wells that were left behind?

The federal government has both its feet on the gas. Its $4.7 billion well-plugging program is on the go in identifying the super-emitters and plugging them in. $30 million of which was used for the research team to develop technologies and best practices for locating the wells.

The team has used drones, field detectors and other remote sensors to look for orphan wells from Pennsylvania to Oklahoma. They have looked on old photos and maps, hiked through creeks, and hacked through brush trying to find the wells. After locating a well, the researchers measure the amount of methane leaking from it and record its GPS coordinates. 

Just to be clear – the idea is not to hunt down each and every well in the country, but to develop tools and methods for states to use in finding the wells and which ones to plug first. 

Government funding programs can also be stretched to allow entities to monetize their methane capture and destruction efforts. And one of those companies that come to government aid in this quest is Zefiro Methane Corporation.

Zefiro, founded in 2018, is a private methane offsets originator that answers the problem of unfunded well-plugging liabilities, turning them into opportunities while moving the upstream energy sector to Net Zero.

The Vancouver-based company is expanding the supply of carbon credits serving as offsets critical for reaching net zero targets. The company’s goal is to reduce methane emissions which aligns with the industry’s objective for a greener future. Zefiro does that in two main ways:

Well decommissioning: Zefiro will cap abandoned wells for a service fee paid by the well owner (up to $150,000). 

Creating offsets: After decommissioning, Zefiro will claim carbon offsets from the programs used by various industries – ex. energy, manufacturing, etc.

To ensure the high quality of their carbon offsets, Zefiro enlists a third-party verifying body to audit and certify each project. This is important to ensure that the project meets all criteria for carbon credit issuance and that it delivers real and actual methane emission reductions.

Investing in the company brings these benefits: 

How About the Cows?

Enteric fermentation, as shown earlier, is one of the largest sources of CH4 emissions – 25%. It’s a natural part of the digestive process in ruminant animals like cattle, sheep, goats, and buffalo. 

To help the livestock or the animal agriculture industry manage its methane pollution, Mootral comes to its rescue. Mootral is a British-Swiss agritech company that developed the world’s first methodology under Verra’s VCS program for quantifying and monitoring methane reductions from ruminants.

Mootral’s methodology is based on a detailed understanding of the biochemical processes in the rumen and of methanogens – the microorganisms within the rumen that produce methane. The company then produces Mootral Ruminant, a natural feed supplement made up of garlic powder and citrus extracts that restricts methanogenic activity and thus reduces methane emissions. 

The company’s mission is to save the climate, one cow at a time through its CowCredit program. Under the program, farmers can convert reductions in methane by feeding Mootral to their raised animals into carbon credits.  

Several scientific studies conducted in the countries of the UK, US, Germany, and the Netherlands have shown significant methane reductions in Mootral’s CowCredit projects. Up to 30% reduction in methane emissions was achieved by dairy cattle on a commercial farm in the UK. As much as 25% reduction has been seen in the studies in the U.S.

CH4 Emission Reduction in UK Dairy Farm

So, what does all this mean for investors? 

Supporting Mootral or buying carbon credits from its projects bring these benefits:

For other major sources of CH4, mitigating emissions is possible through the technologies provided in the GMI report.

Conclusion 

To bring the world to net zero, reducing methane along with carbon emissions is a must. Though mitigating the footprint in the agriculture sector is crucial, addressing emissions caused by oil and gas systems is equally important.

Plugging abandoned oil wells is one of the significant mitigation opportunities available today while other reduction means in other sectors are also feasible. And despite differences in their approach to the problem, they all have one common goal – to prevent methane from escaping into the air.

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Lafarge, Canada’s largest cement and building solutions provider, inked a tri-party deal with Dimensional Energy and Svante to produce synthetic wax from captured carbon dioxide. 

The agreement will bring a demonstration of Dimensional Energy’s carbon utilization technology to Lafarge’s cement facility in Richmond, British Columbia. 

The deal is part of Lafarge’ 3-phased carbon capture project. Noting on the project, Stephanie Voysey from Lafarge Canada said:

“Carbon capture is an important lever in our net zero roadmap… If this pilot can be scaled to capture and use all facility emissions, it would be a first of its kind project for Lafarge and advance export and global adoption of this technology.”

Lafarge and Its 3-Phased Carbon Capture Project 

Cement production releases a lot of CO2. Studies say that about 621 kg of CO2 is produced for each metric ton of cement manufactured. 

Emissions from making cement stood at 1.7 billion metric tons of CO2 in 2021. Here’s how the sector’s CO2 emissions grow over the years.

Decarbonizing its cement production in Richmond is a major part of Lafarge’s commitment to sustainable development. By nature, producing cement is an energy-intensive process that leaves few areas for carbon reduction. 

But Lafarge is always finding ways to help decarbonize the sector and reach a net zero future. Capturing carbon and storing or using it is one of those ways.  

In 2019, Lafarge entered into a joint industry deal with Total and Svante that started its CO2MENT Project. It’s a demonstration of a carbon project that aims to capture 1 tonne per day (1TPD) of carbon emissions from Richmond’s cement plant.

The project involves 3 phases: 

Pre-treatment
Carbon Capture
Carbon Utilization  

Lafarge’s major project contribution is in kind-support via the provision of land, operational support, as well as utilities needed for the demonstration.

It also provides a use case for Svante’s patented carbon capture technology with its advanced adsorbent nanomaterial. The novel capture material acts as a sponge with a high CO2 absorbing ability

All throughout the project’s lifeline, the cement producer directed efforts to find an applicable end use for the captured gas. 

Since there’s no carbon sequestration and transport infrastructure available in southern BC, learning how to put the captured carbon into good use is crucial in Lafarge’s net zero journey in the region. 

Some key updates of the CO2MENT project are as follows:

Over 2,400 hours with 90%; 
CO2 recovery and a CO2 purity of 95%; and 
On-stream factor of more than 75%;

The data will be used in designing a study that will assess the project’s commercial feasibility to capture 1.5 million tonnes of CO2 per year. This initiative is part of Holcim circular economy efforts in the U.S. 

The new tri-party agreement brings the CO2MENT project into its phase 3.

Phase 3: Turning CO2 into Wax

Using CO2 to make products that have commercial value is a choice that Lafarge took in starting Phase 3. 

At this last stage of the project, Lafarge will turn the daily captured carbon to make about 1.5 barrels of synthetic wax every day. This goal would put the carbon utilization expertise of Dimensional Energy into action.

Dimensional Energy Carbon Utilization Process

As seen above, Dimensional Energy’s patented technology converts the captured CO2 with green hydrogen to syngas. This syngas will go through more processes to become liquid hydrocarbons – a premium grade wax. 

Aside from carbon neutral fuels, the waxes can also be used in making other products people use every day. Common examples include cosmetics, plastics, and lubricants, among others. 

Lafarge’s CO2 capture and utilization project will take advantage of Dimensional Energy technology. Once successful, the project will cement the common goal of the three companies involved – reduce carbon emissions. 

Commenting on their ground-breaking initiative, Dimensional Energy’s CEO, Jason Salfi noted that:

“Together, we will transform carbon emissions from one of the world’s most persistent problems of our time to one of our greatest assets to grow a circular economy in better harmony with nature.”

Salfi also said that as tech providers, they’re leveraging existing infrastructure in hard-to-abate sectors like cement to reduce CO2 emissions. 

Other industry players, like Rick Fox’s startup Partanna, for instance, are cutting their carbon footprint by replacing the use of Portland cement with a mixture of natural and recycled ingredients.

Lafarge Canada has pledged a monetary commitment to Dimensional Energy to promote the project’s success for the industry.

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The U.S. Department of Energy (DOE) has opened a $2.25 billion funding program for carbon sequestration or CO2 capture and storage projects to more applicants after selecting the first batch of 9 winners with a $242 million funding round.

The $4.9B Funding from Bipartisan Infrastructure Law

In November 2021, President Joe Biden signed the Bipartisan Infrastructure Law, a once-in-a-generation investment to tackle the climate crisis. The law earmarked about $12 billion to carbon management, specifically to carbon capture, storage, and transportation of CO2. 

Under this law, the DOE revealed its $4.9 billion funding for 3 carbon management demonstration and deployment programs. These funding opportunities seek to slash emissions from power generation and sectors that are difficult to decarbonize like steel and cement. 

According to the Energy Secretary, Jennifer Granholm, the series of funding initiatives are crucial in meeting Biden’s goal to reach a net zero economy by 2050. 

The Department also launched four programs with $3.7 billion funding to help scale up the carbon dioxide removal industry. These include the $115 million prize awards to Direct Air Capture technologies to bolster different approaches to DAC. The program also includes building regional DAC hubs in the country. 

DOE’s $2.25B Program for Carbon Capture and Storage

One of the Department’s new funding opportunities is the $2.25 billion for the validation and testing of large-scale, commercial carbon storage projects. Qualifying projects should be capable of storing 50 million tonnes of CO2 and the Department just revealed the winning applicants. 

The agency picked 9 commercial carbon storage projects qualified for federal funding. These winning projects are found in the Midwest, West and on the Gulf Coast. 

The recipients include 4 higher education institutions, BP PLC subsidiary BP Corporation North America, and the Southern States Energy Board.

Pointing out that the funding wisely focuses on carbon storage projects, an executive from the Carbon Capture Coalition stated:

“The US has abundant, well-characterized carbon storage capacity that can safely and permanently store billions of tons of carbon dioxide emissions, but currently lacks the necessary infrastructure and capture facilities to fully utilize this potential”.

Indeed, the recent funding announcement will help address that infrastructure gap. 

Earlier this year, the DOE also rolled out $2.52 billion to fund 2 carbon capture initiatives. These are the “Carbon Capture Large-Scale Pilots” and “Carbon Capture Demonstration Projects Program” seeking to cut emissions from hard-to-abate industries. The main goal is to speed up and boost investment in technologies that capture, transport and store carbon.

All these funds for carbon capture and removal projects are part of the total of $62 billion dedicated by the bipartisan infrastructure law for DOE’s research, development, demonstration, and deployment of clean energy technologies. 

Expanding Carbon Capture and Storage 

Complementing the Bipartisan Infrastructure Law, the Congress expanded the tax credits for carbon capture in the 2022 Inflation Reduction Act. It awards polluters up to $85 for every metric ton of carbon captured and stored safely underground. 

As per DOE’s estimates, actions under the two laws will result in 40% emissions reduction against 2005 levels economy-wide.

The agency further said that the remaining funds for carbon storage are available under a broader scope. The funding program now includes early-stage development projects while expanding the definition of carbon storage to support more offshore projects. Project developers can apply under the program until July 6. 

The Department also selected 3 carbon transportation projects in Texas and Wyoming to receive funding from another program. Together, they’ll get a total of $9 million for engineering and design activities. 

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Zefiro Methane Corporation, a private methane offsets originator, acquired a majority ownership stake in Plants & Goodwin (P&G), an oil well plugging company.

Led by executives from the former carbon market team at J.P. Morgan, Zefiro seeks to reduce methane emissions by plugging orphaned and abandoned oil and gas wells. This then enables the company to produce methane emission offsets, also known as carbon offset credits. 

P&G is a Pennsylvania-based provider of services to plug orphaned oil and gas wells for over 50 years.

Methane Emissions from Abandoned Wells 

Methane (CH4) is the second most abundant greenhouse gas (GHG) after carbon dioxide that’s responsible for about 20% of global emissions. This gas is at least 25x to over 80x more potent as CO2 at trapping heat in the atmosphere. 

Methane concentrations in the air have increased alarmingly since 2007. Scientists said that this rising CH4 emissions may be the biggest threat to keep global temperatures below 1.5C.

Recently, a NASA satellite revealed that Turkmenistan is one of the worst methane ‘super-emitters’ in the world.

The increasing methane pollution is largely because of human-related activities. And one such activity is abandoning oil and gas wells that are causing serious problems to the U.S. 

According to recent estimates, there are more than 4 million orphaned oil and gas wells in the U.S., spreading out across 26 states. Here’s the percentage share of orphaned oil and gas wells in Canada and the US, according to a study published in the American Chemical Society.

These abandoned, unplugged wells spew out methane that can greatly pollute the air that people breathe. The leaking methane is equal to burning over 16 million barrels of oil, per government estimates.

As such, the inactive wells pose as one of the country’s most pressing concerns in advancing a sustainable economic growth. In response, the Infrastructure Investment and Jobs Act 2022 specifically set aside almost $5 billion to help states plug abandoned wells. To date, all 26 states have applied for funding. 

Zefiro comes to the government’s aid by addressing the methane pollution from unplugged oil and gas wells. Its acquisition of P&G shows that commitment. 

In translating that commitment to reality, Zefiro’s Founder & Chairman, Talal Debs, remarked that: 

“Zefiro’s strategy is to integrate real (physical process) innovation with new forms of capital, through the ‘environmental’ credit markets; the result will be a new kind of enterprise. By enlisting veteran operators like Plants & Goodwin, we are taking the first big step to making our unique vision a reality.”

Zefiro’s Methane Emission Reductions and Carbon Credits

Acquiring Plants and Goodwin will position Zefiro as the leader in fixing the environmental and health problems left behind by the oil and gas companies that abandoned the wells, allowing them to emit methane for decades. 

P&G is a family-owned company that has been plugging wells for more than 5 decades. It is focusing on idle wells in shale and sandstone formations across the Appalachian Basin.

They said that their partnership with Zefiro is “a game-changer for finally bringing about a large-scale, nationwide solution to methane emissions from abandoned wells.”

Luke Plants, assuming the CEO role for P&G, further pointed out that with Zefiro, they’ll be among the first to tackle the problem and be a model for other basins across the U.S. 

Zefiro’s methane emission reductions efforts not only align with the industry’s goal of a greener future. The Vancouver-based company is also expanding the supply of carbon credits working as offsets crucial for achieving net zero targets. 

The company primarily trades in the voluntary carbon markets, believing that firms that go “above and beyond” mandated emission reductions bring a higher environmental benefit that aligns with their ESG policy.

How Does Zefiro Generate Carbon Credits?

Every project is unique because of the many variables of an abandoned oil well. But Zefiro’s projects generally follow the six major steps below as described in their website. 

Project Setup. Zefiro measures pre-plugging emissions and prepares the project document outlining emission baselines, project boundaries and activities. 
Engage Third-Party Verifying/Validating Body (VVB). Zefiro enlists a 3rd-party VVB to audit and certify each project, ensuring it meets all criteria for carbon credit issuance. The independent body needs to confirm that the project will indeed achieve the methane emission reductions it claims. 
Undertake Well Decommissioning. Zefiro will plug each well, ensuring that no emissions can escape by using advanced technologies and adhering to applicable standards and regulations. 
Final Emission Assessment. Once decommissioning is over, Zefiro will do the final assessment to make sure that all project deliverables are met. 
Issue Offsets. The applicable standards organization (e.g., Verra, American Carbon Registry, Gold Standard) issues the appropriate number of offsets. 
Retire Offsets. Offsets are retired or removed from circulation for GHG reductions claim toward a net zero goal or other use. Retirement happens in accordance with the program’s registry processes. Once retired, offsets are not transferable and can’t be used again for other environmental claims.

Zefiro will roll-out to different states, deploying staff to decommission wells nationwide. 

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