DEEPP software platform now quantifying offsets from reduced pneumatic equipment methane emissions
Cap-Op Energy Inc. quantified an additional 47,000 tCO2e of carbon offset credits in 2017 using our award-winning software, the Distributed Energy Efficiency Project Platform (DEEPP). Since 2012, our team has helped upstream oil and gas clients in Alberta generate over 260,000 tCO2e of credits from methane abatement and energy efficiency projects. The credits are verified and serialized under the Alberta Offset System and represent a potential $7.8M of value, at a current carbon price on large emitters of $30/tCO2e. Carbon offsets are designed to spur investment in emission reduction projects, and Cap-Op has designed a low cost, low risk approach to guide organizations in quantifying their emission reductions and generating credits.
There is a tremendous opportunity for upstream oil and gas producers to profitably reduce the methane emissions from their operations. Given regulatory changes at both the Provincial and Federal levels, and an increasing price on carbon, there will be an increasing demand for emission reduction credits.
Organizations can use Cap-Op’s groundbreaking software programs to identify and execute methane abatement projects and quantify the methane emissions reductions under approved protocols such as Engine Fuel Management and Vent Gas Capture, Conversion of High-Bleed Pneumatics, Solution Gas Conservation. Stephen Boles of AET Group Inc. was hired by the Alberta Environment and Parks to lead a government audit this year of one of Cap-Op’s DEEPP aggregated offset projects. According to Boles, “After spending a significant amount of time investigating and reviewing this Project and its data infrastructure, AET has been thoroughly impressed with Cap-Op Energy’s data management system which is intuitive, transparent, and accurate.”
“Our software preserves the records and documentation that support emission reductions claims” says Cap-Op Technical Manager Brian Sloof. “It is designed to work with the asset lifecycle data management systems that operators already use to store many types of inventory and operating records.”
Cap-Op is now validating a new source of offset credit projects that can be achieved through the retrofit of gas-driven pneumatic equipment. These devices have been widely used for decades to operate pumps and instrumentation at remote well locations where access to electricity is limited, but they release significant methane into the atmosphere. As such, new regulations that target methane emissions are being introduced and require a complete phase-out of high-bleed pneumatic instrumentation by 2023. Until then, producers in Alberta have an opportunity to take early action in converting their gas-driven pneumatic devices and generating carbon offsets from the emission reductions. With the added revenues from offsets, the equipment and installation costs will essentially pay for themselves.
Contact us to learn how to take advantage of this opportunity.
Under BC's Renewable and Low Carbon Fuel Requirement Regulation (RLCFRR), the Part 3 Agreement provides a mechanism for Part 3 fuel suppliers to generate bio-fuel credits for intended projects that will increase the supply of low carbon fuels into British Columbia. Suppliers must submit a compliance report, which is approved by a Director and credits are awarded over a one year or multiple year contracts.
There are at least 15,000 credits available under the 2017 Program and 100,000 under the 2018 Program (last year, credits traded at $171/credit - representing the highest value of GHG credits globally). The application deadline is October 6, 2017 (2017 program) and June 1, 2018 (2018 program). If you are biofuel company that supplies renewable fuel to BC, contact us today to learn how you can generate credits as a Part 3 Supplier!
More detail here: http://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/electricity-alternative-energy/transportation/renewable-low-carbon-fuels/part_3_agreements_2017-18.pdf
Yesterday, at our annual Stampede lunch, we officially launched the Methane Abatement Project Platform (MAPP). The MAPP is a business decision support tool that allows companies to identify and execute the lowest cost methane abatement projects and document their progress in real time. MAPP helps organizations find the $5/t CO2e abatement projects. To learn more, please visit us at http://www.capopenergy.com/methane-abatement-campaign-tool.html.
On May 27, 2017 the Government of Canada (GOC) published proposed “Regulations Respecting Reduction in the Release of Methane and Certain Volatile Organic Compounds” targeting oil and gas industry operations. The Regulations will introduce tightened facility and equipment level standards to reduce fugitive and venting emissions. Sector activities covered under the Regulation include natural gas production and processing, conventional oil production, transmission, and most oil sands emissions. The GOC also promulgated proposed "Regulations Respecting Reduction in the Release of Volatile Organic Compounds" which will impact downstream refining and natural gas distribution sectors.
The provinces of Alberta and British Columbia already have regulations in place on flaring, venting and fugitive emissions from upstream facilities. CEPA allows for flexibility via equivalency and other collaborative agreements to be negotiated with individual provinces and territories, if the requirements of CEPA are met. As such, Alberta is currently developing tightened regulatory standards that will meet or exceed the federal Regulations and enable them to continue their front-line regulatory roles. The Alberta Energy Regulator (AER) is expected to issue its draft methane regulations for public comment in September 2017.
The proposed Regulations would impose requirements on all facilities producing and receiving at least 60 000 m3 (approx. 2,100 mcf) of methane in a year and focus on four key areas1: Leak Detection and Repair (LDAR), Venting, Pneumatic Devices, and Compressors. The attached tables summarize the details of the proposed requirements. ECCC are accepting comments on the proposal for 60 days.
Download the brief below for a quick summary of the proposed regulations. Please contact us if you have any questions.