US DOE, EPA to invest $850 mil in methane emission reduction projects

The US Environmental Protection Agency and the Department of Energy announced June 21 a $850 million investment in methane reduction for the oil and gas industries amid policy crackdowns on the climate "super pollutant."

The announced $850 million is dedicated for "projects that will help monitor, measure, quantify, and reduce methane emissions from the oil and gas sectors," according to a June 21 joint statement. The funding originates from the Inflation Reduction Act.

Oil and natural gas facilities are the largest source of methane emissions, which account for a third of warming caused by greenhouse gases, the statement reads.

"This competitive funding opportunity is a key part of a comprehensive approach to reduce methane emissions from the oil and gas sector and advance the adoption of clean, cost-effective technologies," EPA Deputy Administrator Janet McCabe said in a June 20 press call.

According to the statement, the announced funds are specifically aimed at helping "small" oil and natural gas operators to reduce emissions and introduce new technologies. Other objectives for the funding include repairing methane leaks, improving access to data and monitoring services, and improving detection and measurement of emissions.

Funding focused on new technologies and innovation is key to reducing methane emissions while supporting businesses, Senator Joe Manchin, Independent-West Virginia, said in a June 21 statement.

"This type of program to deploy the leading technologies we have to reduce methane emissions is crucial to being able to [reduce emissions] in a way that isn't punitive toward our hardworking and much-needed oil and gas industry," Manchin said.

The deadline to apply for the funding is Aug. 26, 2024.

Policies targeting methane

This funding announcement comes through the IRA's Methane Emissions Reduction Program, a $1.36 billion program dedicated to reducing emissions and improving tracking.

The EPA also announced May 6 a new rule aiming to reduce methane emissions from covered oil and gas facilities by 80%.

The rule establishes a "Super-Emitter Program" that aims to detect large methane leaks and requires operators to track detected emissions "to help close the gap between observed methane emissions and reported emissions," the rule announcement reads.

"Recent studies reveal that actual emissions from petroleum and natural gas systems are much greater than what has historically been reported," the EPA announcement states.

Additionally, in March the EU adopted its first EU-wide legislation aiming to reduce methane emissions in the oil and gas sector, including imported oil, gas and coal.

Earlier this year, a satellite designed to track and measure methane leaks was successfully launched. MethaneSAT, developed by the Environmental Defense Fund, can measure changes in methane concentrations as small as three parts per billion, according to the EDF.

Several oil and natural gas producers at the 28th UN Climate Change Conference in Dubai pledged to reduce methane emissions to near zero by 2030.