Applications
Public Sector and Private Sector Applications
We benefit States by lowering their emissions profile, facilitating efficient plugging by prioritizing wells, and lowering the cost of abating methane. We benefit Oil & Gas companies by lowering their cost to comply with regulations. With State governments receiving $4.7B from the BIL to address this problem and Oil & Gas companies facing fines and incentives to comply with new regulations, both customers are poised to adopt Capwell’s solution
Public Sector
Why now
State, Federal, and Tribal governments received $4.7B from the 2021 Bipartisan Infrastructure Law (BIL) to mitigate methane emissions from orphaned wells
States are incentivized to quickly lower methane emissions at scale in order to qualify for follow-on grants in the BIL ($1.5B), leading them to look for innovative fast solutions like Capwell
Benefits
Prevent years of methane and other chemical leakage, lowering GHG emissions and preventing air quality degradation in surrounding communities
Optimize plugging process, installing Capwell units on high priority hard-to-reach wells while plugging based on geographic area to minimize rig down time
Private Sector
Why now
Exploration & Production companies are subject to Inflation Reduction Act (IRA) methane fines of $900-1,500 per ton of methane emitted over 25,000t CO2e and 0.2% facility methane intensity (total emitted over total sent to sale)
$1B in federal grant funding is available for states to award to producers to limit their methane emissions
New EPA OOOOc regulations will require testing of idle/abandoned wells, raising overall facility methane intensity
Public and investor scrutiny for contributing to environmental degradation and failing to take action
Benefits
Provide a low-cost alternative to immediately reduce methane intensity, preventing costly fines and opening up revenue streams through sustainable production (e.g., RSG, MIQ)
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