Published by Todd Bush on July 5, 2023
FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Zefiro Methane Corp (ZMC), which works to reduce methane emissions by plugging orphaned oil and gas wells, announced today that it has presold a portion of its methane emission offset portfolio to Mercuria Energy America LLC (“Mercuria”), the United States-based division of one of the world’s largest independent energy and commodities groups. These credits, verified by certified third-party auditors, will be produced via Zefiro’s ongoing efforts to cap hazardous, unplugged, and abandoned oil and gas wells across the country.
Financial terms of the transaction were not disclosed.
Following the recent publication of the American Carbon Registry’s methodology report on the value of reducing methane emissions by properly capping these wells, the acquisition will help set the market for this unique type of offset. The transaction also comes when the latest expert projections estimate that the number of these sites throughout the United States has grown to over four million. These wells often leak methane gas that can be up to 84 times more hazardous than carbon dioxide emissions, and they can potentially harm surrounding air quality and farmland irrevocably.
“Since Zefiro’s inception, our team has worked tirelessly to establish the value of methane emission offsets with industry colleagues and public officials to protect better communities affected by unplugged oil and gas wells,” said Curt Hopkins, Chief Executive Officer, Zefiro Methane Corp. “Plugging well sites that are potentially toxic is the long-awaited solution to reward investors while safeguarding our environment for future generations, and we are proud to have taken such an important step with a partner like Mercuria to drive this critical marketplace forward.”
“This landmark transaction signals to the entire sector that not only is there a robust market for high-quality methane emission offsets, but also that plugging these wells is integral to both our national public health and the long-term success of the energy industry,” said Tina Reine, Chief Commercial Officer, Zefiro Methane Corp.
“For too long, investors have not had routine access to reduction activities that display proven pathways to reducing harmful oil and gas emissions,” said Adam Raphaely, Managing Director, Mercuria Group America. “Our work with Zefiro represents not only Mercuria’s commitment to fostering innovative projects and ideas that have the power to reshape the industry but also our alignment with the core principles of many of our customers.”
>> Additional Reading: Zefiro Head of Operations Matthew Brooks Presents on Carbon Credits Panel at Major Oil & Gas Conference in Houston, Texas
Under executive leadership that includes members of the former carbon market team at J.P. Morgan, Zefiro works with public agencies and private entities to actively deploy crews to decommission orphaned oil and gas wells nationwide. With unprecedented global demand for carbon offsets, as corporations and institutions work towards net-zero targets, Zefiro’s methane emission reductions strategically align with industry leaders for a greener future.
Established in 2004, Mercuria is one of the world's largest independent energy and commodity groups, revolutionizing the commodity value chain through technology, expertise, and low-carbon solutions. The company has firmly positioned itself as a leader in the energy transition, with over 50 percent of its new investments directed towards renewables and transitional energy. Mercuria has made substantial contributions to projects such as renewable power, energy storage, grid optimization, critical transition minerals recycling, and environmental products, showcasing its dedication to a sustainable future.
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