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.