- EPA’s Final Methane Rule: A Major Step in Combating Climate Change
On December 2, 2023, the Environmental Protection Agency (EPA) finalized a comprehensive rule aimed at significantly reducing methane emissions from the oil and natural gas industry. This landmark regulation represents a major step forward in the fight against climate change and the protection of public health.
The scope of the rule
The EPA’s final rule applies to both new and existing sources of methane emissions from the oil and natural gas industry. This includes facilities such as:
- Well sites
- Compressor stations
- Liquefied natural gas (LNG) storage tanks
- Pipelines
- Processing plants
The rule requires these facilities to implement a range of measures to reduce methane emissions, including:
- Regular leak detection and repair
- Use of low-leak or no-leak equipment
- Prohibition of routine flaring
- Reduction of venting
The potential impact
The EPA estimates that the final rule will prevent an estimated 58 million tons of methane emissions from 2024 to 2038. This is equivalent to the annual emissions of 1.5 billion metric tons of carbon dioxide, roughly the same as all the carbon dioxide emitted by the power sector in the United States in 2021.
By reducing methane emissions, the rule will help to:
- Slow the rate of climate change
- Improve air quality
- Protect public health
- Create jobs in the clean energy sector
Challenges and opportunities
While the final rule is a major step forward, there are still challenges to implementing it effectively. These challenges include:
- Enforcement
- Compliance costs
- Technological limitations
However, there are also significant opportunities associated with the rule. These include:
- Innovation in methane detection and mitigation technologies
- Economic growth in the clean energy sector
- Improved public health
Conclusion
The EPA’s final rule on methane emissions is a significant achievement in the fight against climate change and the protection of public health. The rule will help to reduce methane emissions from the oil and natural gas industry, which is a major contributor to global warming. While there are challenges to implementing the rule, the potential benefits are substantial. By working together, the federal government, industry, and environmental groups can ensure that the rule is implemented effectively and that we reap the full benefits of this important regulation.
- U.S. Department of Energy Announces $40 Million for Carbon Capture, Transport, and Storage Projects
The U.S. Department of Energy has announced up to $40 million in federal funding for projects that will help advance commercial-scale carbon capture, transport, and storage across the United States. This funding will provide technical, informational, and educational assistance to stakeholders involved in DOE and private sector-based carbon transport and storage projects located throughout the country, as well as to communities impacted by these projects. The Biden-Harris Administration is committed to ensuring that all carbon management projects continue to be designed, built, and operated safely and responsibly, and in a way that reflects the best science and commercial practice and responds to the needs and inputs of local communities.
More details about the funding opportunity is available here.
- Google Taps into Earth’s Heat with New Geothermal Power Project in Nevada
A new geothermal power project is now operational in Nevada, providing clean energy to Google’s data centers. The project, a collaboration between Google and startup Fervo, utilizes innovative technology to harness geothermal power. The relatively small project generates 3.5 megawatts of electricity, enough for about 750 homes. The electricity will be fed into the local grid, powering two of Google’s data centers near Las Vegas and Reno. This project aligns with Google’s goal of running its operations on carbon-free electricity by 2030. Google views geothermal as a crucial component of its future energy mix, complementing wind and solar power during periods of low production.
- Southern States Energy Board Spearheads Decarbonization Efforts with Innovative CCS Initiatives
The Southern States Energy Board (SSEB) has been selected to lead two new DOE-funded decarbonization projects. The first project, Project ACCESS, aims to establish a commercial-scale carbon capture and storage (CCS) hub in south Florida. The second project, the Tri-State CCS Hub, seeks to significantly reduce CO2 emissions in an industrial region of eastern Ohio, the adjacent northern panhandle of West Virginia, and western Pennsylvania. Both projects will utilize advanced geophysical methods to assess the suitability of storage sites and will engage with the local communities to address environmental concerns.
- Heartland Hydrogen Hub: A Catalyst for a Clean Energy Future in the Upper Midwest
The Heartland Hydrogen Hub (HH2H) has been selected by the U.S. Department of Energy (DOE) to receive up to $925 million in funding to develop a clean hydrogen ecosystem in the Upper Midwest. The hub is a collaboration between Xcel Energy, Marathon Petroleum Corporation, TC Energy, and the University of North Dakota’s Energy & Environmental Resource Center. The hub aims to reduce carbon emissions by more than 1 million metric tons per year and create approximately 3,900 total direct jobs.
- The HH2H is one of seven selected to receive funding from the DOE’s Regional Clean Hydrogen Hubs (H2Hubs) program.
- The hub will produce and use low-carbon hydrogen at commercial scale in Minnesota, Wisconsin, South Dakota, North Dakota, and Montana.
- The project is expected to reduce carbon emissions by the equivalent of taking 220,000 gasoline-powered cars off the road.
- Xcel Energy expects to receive a large portion of the federal award, subject to negotiations.
- The company plans to invest up to $2 billion over a decade for clean hydrogen producing equipment and infrastructure.
Equinor acquires stake in Bayou Bend CCS
Equinor has acquired a 25% stake in Bayou Bend CCS LLC, a carbon capture and storage (CCS) project located in the Gulf Coast of Southeast Texas. The project is expected to be one of the largest CCS projects in the US, with the potential to store over 1 billion tonnes of CO2. Equinor’s investment in Bayou Bend is part of its strategy to develop low-carbon solutions and help decarbonize the energy industry. The company has a target of developing 15-30 million tonnes of CO2 transport and storage capacity per year by 2035.
The Bayou Bend project is still in the early stages of development, but it has the potential to play a significant role in reducing emissions from industrial facilities in the Gulf Coast region. The project is expected to be operational by 2027.
In addition to Equinor, the other partners in the Bayou Bend project are Chevron (50%) and Talos Energy (25%). The project is being developed by Carbonvert, a CCS company that Equinor acquired in 2021.
CCS is a technology that captures CO2 from industrial facilities and stores it underground. It is considered to be one of the most promising technologies for reducing emissions from hard-to-abate industries, such as oil and gas, cement, and steel.
The development of CCS projects is accelerating as governments and companies around the world look for ways to meet their climate goals. The Bayou Bend project is one of many CCS projects that are currently in development in the US.