Zefiro Methane to accelerate well-plugging operations considering new carbon credit methodology
(WO) – ZEFIRO METHANE CORP. announced that a first-of-its-kind methodology has been published by the American Carbon Registry (“ACR”) allowing carbon credits to be created from the reduction of methane emissions by plugging orphaned oil and gas wells in Canada and the United States.
In a press release dated May 19, 2023, Zefiro announced its acquisition of a majority ownership stake in Plants & Goodwin, Inc. (“P&G”), a third-generation family business with more than 100 employees that specializes in oil and gas plugging and abandonment operations in four U.S. states. By having an established well-plugging operation under the Zefiro umbrella, the company is now positioned to originate carbon credits through the new ACR methodology, which can contribute to addressing the funding gap for plugging orphaned oil and gas wells, a deficit that is presently estimated to be in the tens of billions of U.S. dollars.
Zefiro Chief Commercial Officer Tina Reine noted, “ACR has shown commitment in the launch of this methodology. It moves the market forward with a much-needed framework for addressing methane emissions from leaking orphaned wells. Many of these leaks contribute to additional environmental problems including groundwater contamination. Additionally, the new methodology addresses the need for more avenues to create high-quality offsets within the voluntary carbon market. This methodology can scale emission reductions in a sector that seeks environmental solutions.”
Zefiro Chief Executive Officer Curt Hopkins commented, “In the United States, there are currently fairly limited resources for plugging orphaned oil and gas wells in terms of labor, equipment and expertise, which makes our recent acquisition of P&G all the more meaningful in the context of this development. With P&G now being a subsidiary of Zefiro that has more than 100 employees, an arsenal of heavy-duty equipment, and a legacy of more than 50 years and three generations of family operations in the Marcellus and Utica basins, I believe that we are very favorably positioned to establish a leading position in the emerging market segment of originating carbon credits by plugging orphaned wells.”