Derek Keeler, of Atlantis Research Labs, poses beside a "PureJet" unit at the company's shop in Brier Park on Thursday. Keeler says that interest in reducing methane emisions, from traditional flaring, venting or leakages, is growing as oilpatch companies develop plans to meet emission reduction targets. -- NEWS PHOTO COLLIN GALLANT
cgallant@medicinehatnews.com@CollinGallant
A new provincial grant program to cover some costs for oilpatch companies to better manage or eliminate methane emissions is “a good start” according to a local “cleantech” manufacturer.
Derek Keeler of Atlantis Research Labs, which makes the methane reducing PureJet, says the size of the issue – involving hundreds of thousands of sites – isn’t yet being fully realized by government programs.
The good news, he says, is industry is actively planning to rein in emissions without government aid.
“With the (poor) environment that the oil and gas sector is in, that (new program) is a good thing,” said Keeler. “But it’s being driven by producers more than governments.”
He said interest in his company’s products jumped in July and have been steady ever since, an increase he attributes to industry responding to investor demands for credible environmental action plans.
Last week, the Alberta government announced $52 million to help the sector and oil and gas producers meet increasing standards to avoid methane (the main component of natural gas) from escaping into the atmosphere.
Even with depressed energy prices, said Keeler, companies are thinking about the long-term health outlook.
“We’ve gone from knocking on doors to having our phone ringing off the hook,” said Keeler, who says domestic and North American producers make up the bulk on inquiries alongside those from overseas.
That will lead to increased hiring for the company that has developed a series of prototypes in the Brier Park facility it shares with related company, Formtech Machining.
The PureJet is a relatively mobile system that boosts the efficiency of flaring gas to almost completely eliminate methane.
Even though that produces carbon dioxide, it’s considered a win because methane is about 25 times more potent as a greenhouse gas.
That ratio has also led governments to target the problem as one of the fastest ways to reduce emissions quickly.
“The goal is to eliminate waste gas emissions and there are viable solutions in the marketplace,” he said. “A 30 to 40 per cent reduction is easily achievable.”
PureJet units costs can range between $30,000, for machine that could service an eight-well battery, up to $300,000 for larger gathering plants.
Last week, Environment Minister Jason Nixon announced that the TIER Emissions Reduction fund would provide initial support for firms looking to reduce emissions.
That program collects a carbon levy on major emitters, and in September the province announced it was prepared to use the entire $750-million fund to create economic activity and bolster the energy sector while addressing emissions, which is the fund’s stated purpose.
Among the new program, $25 million will be allotted in the “Methane Technology Implementation program” wherein companies install Alberta-made machinery to clamp down of fugitive methane that escapes in venting or traditional flaring.
Producers could be reimbursed for half the cost of new equipment up to $1 million each, from a $25-million fund.
As well, money will go toward developing technology to detect and tract escaping methane in two programs for small to mid-sized producers worth a total of $27 million.
