The Environmental Protection Agency (EPA) and Department of Energy (DOE) have announced a massive incentive for small oil and gas producers. This $850 million grant program, open for competitive bidding until August 26th, has the potential to significantly reduce methane emissions. It offers optimism in combating greenhouse gas emissions as it aligns with the Biden Administration’s plan.
As the Biden Administration pushes radical green reform, these grants follow a long series of expensive environmental policies from the White House. Naturally, the primary target for these grants is oil and gas companies, which are said to be responsible for 1/3 of the global methane emissions.
Where is the Money Coming From?
The funding is made available through the Inflation Reduction Act, one of the Biden Administration’s primary climate legislations. While the grants are mainly geared toward small oil and gas producers, the major funding program is open to all sectors. This inclusive project ensures that industry, academia, NGOs, Native American tribes, and state and local governments are all considered in the fight against methane emissions. The DOE and EPA are responsible for distributing the funds and allocating which organizations receive grant money.
Of course, the Inflation Reduction Act represents a massive expenditure estimated to cost well over $1 trillion. This law will enter its third year in August, and the cost is expected to escalate further. As of its first anniversary, economists estimated Biden’s climate agenda would reach a staggering expense triple its initial estimated cost.
Primary Objectives
This enormous funding program’s primary goals are to detect, measure, quantify, and reduce methane emissions. This investment emphasizes small oil and gas companies and encourages them to locate leaks and address potentially avoidable emissions.
Identifying and quantifying methane emissions is a primary goal for the grant program, as many sectors and organizations lack the technology to detect and calculate their emissions accurately. Because of this, portions of the grant funding will be allocated to installing methane detection technology within these organizations.
Additionally, grant money can be spent to install machinery and technology to help significantly capture and reduce methane emissions. Adopting clean energy tech and machinery will be essential to lessen methane emissions released from industry complexes.
“These investments from President Biden’s investing in America agenda will drive the deployment of available and advanced technologies to understand better where methane emissions are coming from. That will help us more effectively reduce harmful pollution, tackle the climate crisis, and create good-paying jobs,” EPA Administrator Michael Regan told Reuters.
International Efforts
In addition to the monumental expenditures of the Biden administration, the European Union is also taking on methane emissions. In March, the EU adopted the first legislation to reduce methane emissions from the hydrocarbons sector.
To map methane emissions globally, the Environmental Defense Fund (EDF) developed a satellite to detect and locate methane emissions on the Earth’s surface. Lead scientists from the EDF claim the satellites are designed to help produce high-quality data, creating a detailed map of where major methane emissions originate. MethaneSAT launched in March via a SpaceX rocket and cost $88 million to develop.
Reducing methane emissions could be a viable option in the near future with the combination of the private sector’s efforts, government legislation, and international cooperation. However, one has to question the exorbitant expense and potential adverse side effects that may occur.
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About the author: Jess Henley began his career in client relations for a large manufacturer in Huntsville, Alabama. With several years of leadership under his belt, Jess made the leap to brand communications with Bizwrite, LLC. As a senior copywriter, Jess crafts compelling marketing and PR content with a particular emphasis on global energy markets and professional services.
About the author: Tyler Reed began his career in the world of finance managing
a portfolio of municipal bonds at the Bank of New York Mellon. Four years later, he led the Marketing and Business Development team at a high-profile civil engineering firm. He had a focus on energy development in federal, state, and local pursuits. He picked up an Executive MBA from the University of Florida along the way. Following an entrepreneurial spirit, he founded a content writing agency. There, they service marketing agencies, PR firms, and enterprise accounts on a global scale. A sought-after television personality and featured writer in too many leading publications to list, his penchant for research delivers crisp and intelligent prose his audience continually craves.
