Managing Methane May Be Key to Meeting Climate Goals – Where Does it Come From and What Is Being Done About It?

Excessive Carbon dioxide (CO₂) is terrible for the atmosphere.  It is a greenhouse gas (GHG) that lingers, trapping radiation from escaping into the vacuum of space.  The result? Increasing global temperatures resulting in melting ice-caps, rising sea levels, and more.  However, as we grow our understanding of climate change, awareness of an even worse GHG has begun to spike, demanding action – Methane (CH₄).  Unfortunately, new studies show that Earth is at risk of a climate crisis as higher temperatures due to (CH₄) result in the release of even more (CH₄) in the form of fire ice, further exacerbating the problem.

Fire-Ice

Recent research published in “Nature Geoscience” has shed new light on the behavior of marine methane hydrates (frozen methane often called ‘Fire-Ice')  and their potential impact on climate change, offering crucial insights for our understanding of this significant carbon reservoir.

Marine methane hydrates, found in sediment around continental margins at depths exceeding 450–700 meters, have long been recognized as a potential driver of past global carbon-cycle changes.  Without rising global temperatures, much of this fire-ice would remain trapped beneath our ocean and sea floors.  However, as temperatures begin to climb, these stores begin to melt, releasing the trapped methane.

The study, utilizing advanced 3D seismic imaging on the Mauritanian passive margin, revealed that climate-induced warming can lead to methane hydrate dissociation, releasing methane into the ocean.  Intriguingly, this release is not limited to the 3.5% of hydrates near the seabed; the research uncovered evidence of methane venting from deeper layers, through a network of large pockmarks about 10-15 km landward from the hydrate stability zone.

The study's findings emphasized the need to reassess the contribution of these deep-sea hydrates in climate change models, particularly considering their role in increased methane venting and subsequent ocean acidification, underscoring the complexity and urgency of addressing methane's impact on our climate.

What Makes Methane So Bad?

Methane (CH₄) is a more potent greenhouse gas (GHG) than carbon dioxide (CO₂), especially in the short term. The reason for this lies in how each gas absorbs and emits energy.

Global Warming Potential (GWP): Methane has a higher GWP compared to CO₂. GWP is a measure of how much energy the emissions of 1 ton of a gas will absorb over a given period of time, relative to the emissions of 1 ton of carbon dioxide. The standard period for GWP is 100 years. Methane's GWP over 100 years is 28-36 times greater than CO₂, according to the Intergovernmental Panel on Climate Change (IPCC). Over a 20-year period, its GWP is even higher, approximately 84-87 times that of CO₂.

Lifetime in the Atmosphere: Methane has a shorter lifespan in the atmosphere compared to CO₂ (about 12 years versus hundreds to thousands of years for CO₂. However, it is much more efficient at trapping radiation while it lasts. This makes methane an extremely powerful GHG over a short period.

Chemical Reactions in the Atmosphere: When methane breaks down, it produces CO₂ and water vapor, both of which are also greenhouse gases. This adds to its overall impact on global warming.

So, while CO₂ is more abundant and remains in the atmosphere longer, methane is significantly more effective at trapping heat in the atmosphere than CO₂ over a shorter time frame, making it a particularly concerning GHG in terms of immediate impacts on climate change.

Where Does it Come From?

Aside from methane trapped in the form of Fire-Ice, where is all the methane coming from? The answer to that question is part of the reason this GHG is so dangerous – production is prevalent across a variety of industries, making it even harder to keep in check.  Interestingly, the Bitcoin mining industry, which was once viewed as a detriment to the environment, has been increasingly viewed as ESG compliant over the past year.  This is due to not only a sizable switch to sustainable energy and ability to monetize stranded energy sources, but through the burning of flared methane.  As it stands, the following three are the top-ranked emitters.

1. Agriculture

This is the largest source of methane emissions globally, particularly from enteric fermentation in ruminant animals like cattle, sheep, and goats.  Methane is produced during the digestive process of these animals and is released into the atmosphere.  Additionally, rice paddies are also significant contributors, as methane is produced when organic matter decomposes in the flooded fields.

2. Fossil Fuel Production and Use

Methane is released during the production, processing, storage, transmission, and distribution of fossil fuels, particularly natural gas and oil.  Methane emissions occur through venting and leaks at oil and natural gas facilities, as well as during the extraction of coal.

3. Waste Management

Landfills are a major source of methane emissions, where organic waste decomposes anaerobically (without oxygen).  Wastewater treatment plants also contribute to methane emissions, especially those that handle a large amount of organic matter.

The Lake-Effect

Much like the aforementioned Fire-Ice, rising temperatures and environmentally harmful practices such as fracking only serve to fuel the issue, resulting in the release of even more methane.

For example, there are an increasing amount of areas with melting water-adjacent permafrost that results in excessive organic material deposits entering water supplies.  As this material decomposes, it produces methane that will be released into the atmosphere.  This soon-to-be-released methane can be seen as flammable bubbles in many lakes throughout cold-climate areas like Alaska.

Industry Players

Thankfully, a growing list of companies is working to address those industries largely responsible for excessive methane production.  If effective solutions can be developed and prevent the unnecessary release of trapped methane stores around the world, perhaps runaway temperature spikes can be avoided.  The following are a few examples of companies playing this role.

*Figures provided below were accurate at the time of writing and are subject to change.  Any potential investor should verify metrics*

1.  Crusoe Energy

Crusoe Energy is a pioneering technology company providing innovative solutions to mitigate methane emissions in the oil industry, particularly focusing on flare gas mitigation.  The company's approach centers around converting excess natural gas, often flared as waste in oil production, into a valuable resource for powering data centers and cryptocurrency mining operations.

At the heart of Crusoe's technology is the Digital Flare Mitigation (DFM) system.  This system captures the natural gas that would typically be burned off in flares at oil production sites.  Instead of flaring, this gas is used to fuel on-site generators that provide power for mobile data centers.  These data centers, in turn, can be used for various high-intensity computational tasks, including cryptocurrency mining, an energy-intensive process.

Crusoe's solution addresses two critical challenges: reducing the environmental impact of flaring in oil extraction, which is a significant source of carbon dioxide and methane emissions, and harnessing a previously wasted resource for productive use.  By doing so, the company not only contributes to reducing greenhouse gas emissions but also adds efficiency to the oil production process.

The use of flare gas for digital operations represents a significant step forward in energy utilization and environmental conservation in the oil industry.  Crusoe Energy's innovative approach highlights the potential for technology-driven solutions to transform waste into valuable resources, contributing to more sustainable practices in the energy sector.

In mid-2022, Crusoe Energy raised in excess of $350M in a Series C, along with $155M in credit facilities.

2. Vespene Energy

Vespene Energy, an innovative clean technology company, is at the forefront of addressing methane emissions from landfills, a significant environmental challenge.  Its solution focuses on capturing and converting landfill methane, a potent greenhouse gas, into valuable renewable natural gas (RNG).  This process not only mitigates the release of methane into the atmosphere but also transforms it into a useful energy source.

Vespene's technology involves installing advanced methane capture systems at landfill sites. These systems collect the methane gas produced by decomposing organic waste. Once captured, the methane undergoes a purification process, transforming it into RNG, which is comparable in quality to conventional natural gas. This RNG can then be fed into the existing natural gas grid or used as a fuel for vehicles, providing a sustainable energy option.

Vespene Energy's approach has dual benefits: it significantly reduces greenhouse gas emissions from landfills and contributes to the generation of renewable energy. By tapping into the vast potential of landfill gas, Vespene not only helps mitigate climate change but also adds a valuable resource to the renewable energy landscape. This innovative solution presents a practical and impactful way of turning a waste product into a clean energy resource, aligning with global efforts to transition to more sustainable energy systems.

In mid-2022, Vespene Energy raised $4.3M in a funding round.

3.  Beyond Meat

Beyond Meat stands out in the food industry for its strong commitment to environmental sustainability.  Specializing in plant-based meat alternatives, the company addresses the significant environmental impact of traditional meat production.  Beyond Meat's products, such as the Beyond Burger, require substantially less land and energy and generate fewer greenhouse gas emissions compared to conventional meat.

This approach not only aligns with the growing trend towards plant-based diets but also positions Beyond Meat as a leader in sustainable food innovation.  For environmentally-conscious investors, Beyond Meat offers a unique opportunity to support a company actively contributing to a more sustainable food system.

Final Thoughts

The escalating concern around greenhouse gases such as methane (CH₄) underscores a critical juncture in our climate change battle. Methane, more potent than CO2 in trapping heat, is increasingly scrutinized due to its short-term impact and efficiency in warming our planet.

In response, innovative companies are now developing solutions to mitigate methane emissions in their respective sectors.  As we confront the complexities of methane's role in climate change, the actions of such companies underscore the importance of innovative, cross-sectoral approaches to mitigate methane emissions. Their efforts, along with increased awareness and understanding of methane's impact, are crucial steps towards ensuring a sustainable future.