The U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) announced approximately $850 million for 43 selected projects to reduce, monitor, measure, and quantify methane emissions from the oil and gas sector.

Key Takeaways-

• EPA and DOE announced a substantial $850 million in funding for 43 projects to reduce methane emissions from oil and gas sector.
• The funding specifically targets small oil and gas operators, Tribes, and other entities.
• The projects aims at reducing emissions and supporting research for the projects.
• The announcement highlights specific projects in the Southeastern Regions like M2X Energy, Inc. and the University of Kentucky Research Foundation.

This announcement was made on December 20 that aims to help small oil and gas operators, Tribes, and other entities across the country to curb emissions as part of President Biden's Investing in America agenda.

This investment builds on unprecedented action across the Biden-Harris Administration to dramatically reduce methane emissions, with agencies taking more than 100 actions since 2023, including the finalization of an EPA rule that is expected to reduce methane emissions from oil and gas sources which are covered by 80% from 2024 to 2038 as compared to projected emissions without this rule.

“Today, we’re continuing to build on strong standards and historic progress to cut methane pollution and protect communities across the country,” said EPA Administrator Michael S. Regan. “Together, these investments will support small businesses and drive the deployment of available and advanced technologies to reduce harmful pollution and tackle the climate crisis, while creating good-paying jobs.”

The projects chosen to receive funding from the Inflation Reduction Act, the most substantial climate investment ever undertaken, mark a crucial advance in tackling climate change and enhancing air quality.

These projects will contribute to reducing methane emissions by addressing existing air pollution issues and providing support to small oil and gas companies. This will be achieved through the implementation of both existing and new cutting-edge technologies. Furthermore, collaborative efforts will be established to improve emissions monitoring and ensure the transparent sharing of data with impacted communities.

A diverse group of entities, including one Tribal consortium, eleven universities, and twenty private companies, have been chosen to participate in projects spanning the nation.

• Three projects will empower small-scale oil and gas producers nationwide to substantially decrease methane emissions from their lower-yielding operations. These projects will leverage readily accessible technological solutions.

• Thirty-one projects will expedite the implementation of emerging commercial technologies designed to curtail methane emissions originating from both newly installed and existing equipment.

• Four initiatives will enhance the ability of communities to access real-world emissions data and actively participate in the monitoring of methane emissions.

• Five initiatives will bolster the capabilities for detecting and quantifying methane emissions emanating from oil and gas activities within specific regions.

The Environmental Protection Agency (EPA) and the Department of Energy (DOE) are collaborating to provide $1.36 billion in financial and technical support through the Methane Emissions Reduction Program, a key component of the Inflation Reduction Act. DOE's National Energy Technology Laboratory, overseen by the Office of Fossil Energy and Carbon Management, will be responsible for managing the selected projects.

These initiatives complement the $350 million in grant funding already awarded to states by EPA and DOE in December 2023. This earlier funding aims to encourage industry participation in voluntary emissions reduction efforts at low-producing wells, enhance emissions monitoring, and facilitate environmental restoration at well pads. Collectively, these investments represent a crucial step towards the successful implementation of the Methane Emissions Reduction Program.