The U.S. Environmental Protection Agency (EPA) and the Department of Energy (DOE) announced today a historic $850 million investment in 43 projects aimed at reducing methane emissions in the oil and gas sector. Seven projects in Colorado and Wyoming, part of EPA Region 8, are among those selected for funding as part of President Biden’s Investing in America agenda.
This funding, supported by the Inflation Reduction Act, builds on over 100 federal actions since 2023 to curb methane emissions. Key among these actions is an EPA rule projected to cut methane emissions from covered oil and gas sources by 80% between 2024 and 2038.
The initiative incentivizes companies to adopt near-term solutions for energy conservation, operational efficiency, and methane emissions reduction while supporting underserved communities.
Major Projects in Colorado and Wyoming
Colorado State University (CSU) in Fort Collins received $324.6 million for three projects:
Marginal Conventional Wells (MCWs) Program: A funding initiative to assist small operators with methane mitigation efforts through on-site assessments and tailored solutions, emphasizing community outreach and workforce training.
Methane Reduction in Gas Compressors: A retrofit system to significantly cut emissions from natural gas transmission engines.
North-Central Methane Center: A hub to develop accurate emissions measurements to inform regional and federal inventories.
Pioneer Energy, Inc. of Lakewood, Colorado, secured $17 million for projects that include:
Deployment of zero-emission production technologies for sour sites and conventional wells.
On-site methanol synthesis to eliminate flaring emissions.
Workforce development programs targeting underserved communities, including adults on the autism spectrum.
Blue Mountain Operations in Rock Springs, Wyoming, was awarded $3.8 million to deploy solar-powered compressors, eliminating methane emissions from remote sites while fostering workforce growth and reducing local pollution.
Leadership Speaks Out
“This investment addresses the critical challenge of methane emissions, helping our region’s communities breathe cleaner air,” said EPA Regional Administrator KC Becker. “These grants empower operators to adopt modern technologies while creating opportunities for underserved workers.”
U.S. Secretary of Energy Jennifer M. Granholm called the funding “a game-changer,” stating: “It delivers health and environmental benefits, equips small operators to upgrade infrastructure, and supports clean energy jobs.”
Colorado Senator Michael Bennet praised the state’s role as a national leader in methane reduction, highlighting the potential to combat climate change and boost the clean energy economy.
Nationwide Impact
The projects represent a significant step toward mitigating climate change and improving air quality. With support for Tribes, universities, and private companies, the initiatives aim to:
Deploy innovative methane mitigation technologies.
Provide transparent emissions data to affected communities.
Create jobs in the clean energy sector.
EPA and DOE’s partnership has allocated $1.36 billion to the Methane Emissions Reduction Program, complementing a $350 million grant program launched in December 2023. Together, these efforts support the Biden-Harris Administration’s Justice40 Initiative, ensuring that 40% of benefits reach disadvantaged communities.
Methane Reduction: A Climate Priority
Methane, a potent greenhouse gas, is responsible for about one-third of current global warming. The U.S. oil and natural gas sector is the largest industrial source of methane emissions, and the new program aims to make the U.S. a global leader in low-emissions energy production.
By driving innovation in detection, monitoring, and mitigation, these investments promise economic, health, and environmental benefits while ensuring competitiveness in global markets.
| Find out more here. |
