Methane emissions are rising—about 25 percent in the past 20 years, and still going up— but they are difficult to measure and track. What can be done? Photo via Canva

Here’s the bad news. In 2019, methane (CH4) accounted for about 10 percent of all U.S. greenhouse gas emissions from human activities, such as those related to natural gas extraction and livestock farming. Methane doesn’t last as long in the atmosphere as carbon dioxide, but is more efficient at trapping radiation; over a 100-year period, the comparative impact of CH4 is 25 times greater than CO2. To put it another way, one metric ton of methane equals 84 metric tons of carbon dioxide (see chart). Finally, while methane emissions are rising—about 25 percent in the past 20 years, and still going up—they are difficult to measure and track.

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Source: McKinsey.com

And here’s the good news. Five industries—agriculture, oil and gas, coal mining, solid waste management, and wastewater—account for almost all of human-made methane emissions. There are practical things these industries can do, right now, at reasonable cost and using existing technologies, that could cut emissions by almost half (46 percent) in 2050. That said, it will be easier for some industries than for others. Take agriculture. Most of its emissions come from cows and sheep, which produce methane during digestion; in fact, animals account for more carbon dioxide equivalent (CO₂e) emissions than every country except China, according to a recent McKinsey report. Dealing with billions of animals, dispersed on farms small and large all over the world is, to put it mildly, complicated. Certain kinds of feed additives, for example, can reduce the formation of methane, cow by cow—but is expensive ($50 per tCO₂e and up). This add costs to farmers, without any economic benefits to them, and makes food more expensive. That’s a tough sell.

On the other hand, the energy industry accounts for 20 to 25 percent of methane emissions; its operations are fairly consolidated, and there are significant resources and expertise at hand. Plus, in many cases, there are genuine economic opportunities. For example, plugging methane leaks means less gas gets lost. Large volumes of methane emissions that are now treated as a waste could be recovered and sold as natural gas—something that is not always economic to do, but could be as gas prices rise or conditions change. According to the International Energy Agency (IEA), the industry flares approximately 90 Mt of methane per year, losing $12 billion to $19 billion in value. Over time, too, normal maintenance and upgrading strategies can also reduce emissions, for example, by replacing pumps with instrument air systems. There are many different ways to prevent losses in upstream production, including leak detection and repair, equipment electrification, and vapor recovery units.

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Source: McKinsey.com

In the short term, meaning over the next decade, the IEA says that these and other changes could reduce emissions 40 percent (at 2019 gas prices), while more than paying for themselves. In effect, there is low-hanging fruit out there. The full potential, according to McKinsey, is 75 percent fewer emissions by 2050, but to get there, things get more expensive, somewhere in the range of $20 per tCO₂e.

Naturally, oil and gas players are not eager to embrace added costs, and these will eventually be passed on to consumers. But the industry is looking at a future that is carbon-constrained in one way or another, either through a price on carbon, or regulation, or both. It might well be that addressing methane emissions provides a way to decarbonize its operations at reasonable cost. And while there is little brand equity to natural gas at the moment—no one shops for it by name—it is possible that in decades to come, companies that can show they are producing low- or zero-carbon gas might be able to command a price premium.

Much of the oil and gas industry doesn’t disagree with this analysis. The International Group of Liquefied Natural Gas Importers, a trade group, has made the case that “abating greenhouse gas emissions (from wellhead to terminal outlet), in particular fugitive methane emissions,” is important. On the oil side, the American Petroleum Institute, as part of its climate action plan, has called for the development of methane detection technologies, and reducing flaring to zero: “We support cost-effective policies and direct regulation that achieve methane emission reductions from new and existing sources across the supply chain.” And the Oil and Gas Climate Initiative, whose companies account for almost 30 percent of global production, are also on board, calling the reduction of methane emissions to near zero “a top priority.” Back in 2017, the Houston Chronicle, the home paper of the Texas oil and gas industry, argued for better practices: “If Texas wants the world to buy our LNG exports, a sign of environmental good faith would go a long way.” And in fact there has been progress: the OGCI estimates that methane emissions are have declined 33 percent from 2017-20.

On the whole, then, this looks like one area of climate policy where there is broad consensus. Methane matters. According to one science paper, dealing with it “could slow the global-mean rate of near-term decadal warming by around 30 percent.” Just the oil-and-gas industry’s share, then, could make a measurable difference. I am not saying getting methane emissions way down will be easy, but the industry knows what to do and how to do it. It is in its interest, and that of the planet, to do so.

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Scott Nyquist is a senior advisor at McKinsey & Company and vice chairman, Houston Energy Transition Initiative of the Greater Houston Partnership. The views expressed herein are Nyquist's own and not those of McKinsey & Company or of the Greater Houston Partnership. This article originally ran on LinkedIn on October 21, 2021.

Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. Photo courtesy of Lignium

Why this growing Chilean clean energy company moved its HQ to Houston

future of farming

In Houston, air pollution is usually more of an abstract concept than a harsh reality. But in parts of Chile, the consequences of heating homes with wet wood are catching up to residents.

“Given all the contamination, there are times kids aren’t allowed to go to school. The air pollution is really affecting people’s health,” says Agustín Ríos, COO of Lignium Energy.

Additionally, the methane and nitrous oxide produced by cattle farming are a problem. But Lignium Energy, an international company started in Chile and now headquartered in Houston’s Greentown Labs, has a solution that can solve both problems by upending the latter.

“There’s a lack of solutions with the problem of manure. Methane gases are destroying our planet,” says CEO and co-founder Enrique Guzmán. He goes on to say that most solutions currently being developed are expensive and complex. But not Lignium Energy’s method, invented by co-founder José Antonio Caraball.

Caraball has patented an extraordinarily simple concept. Lignium separates the solid from liquid excretions, then cleans the solid to generate a hay-like biomass. Biomass refers to organic matter that can be used as fuel. What Lignium makes from the cattle evacuations is a clean, odorless and highly calorific biomass.

Essentially, Lignium combats greenhouse gasses with a green fuel that boasts an enviably low carbon footprint. “Our process is very cheap and very simple. That’s why we are a great solution,” explains Guzmán.

Caraball, an industrial engineer, came up with the idea six years ago, says Guzmán. Five years ago, he began working with the company, one year ago, Guzmán and Ríos picked up and moved to Houston.

“We decided to move out of Chile due to market size,” says Ríos. However, the product is already being sold to consumers in its homeland.

Why Houston? The reason was twofold. As an energy company, Ríos says that they wanted to be in “the energy capital of the world.” But Texas is also one of the largest sites of cattle farming on the planet. Lignium prefers to work with farms with more than 500 head to optimize harvesting the waste that becomes biomass.

With that in mind, Lignium has partnered with Southwest Regional Dairy Center in Stephenville, Texas, a little more than an hour southwest of Fort Worth, a town known as the world’s rodeo capital. The facility is associated with Texas A&M, though Guzmán says Lignium is not officially associated with the university.

Guzmán says that the company is currently hiring a team member to help Lignium figure out commercial logistics, as well as four or five other Houstonians who will help them take their product to market in the United States, and eventually around the globe. For now, he predicts that they will be able to sell to consumers in this country by early next year, if not the fourth quarter of 2023.

“We are very committed to the solution because, at the end of the day, if we do good work with the company, we are sure we can give better conditions to the cattle industry,” says Guzmán. “Then we can make a big impact on a real problem.

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This article originally ran on InnovationMap.

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Tesla announces annual meeting under pressure from shareholders

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Tesla has scheduled an annual shareholder meeting for November, one day after it came under pressure from major shareholders to do so.

Billionaire Elon Musk's company said in a regulatory filing on Thursday that the meeting would be held Nov. 6, but that may prove troublesome because it comes nearly three months after it is required to do so under state law in Texas, where the company is incorporated.

The annual meeting, given Tesla's fortunes this year, has the potential to be a raucous event and it is unclear how investors will react to the delay, which is rare for any major U.S. corporation.

Tesla shares have plunged 27% this year, largely due to blowback over Musk's affiliation with President Donald Trump, as well as rising competition.

The announcement of the meeting comes a day after a group of more than 20 Tesla shareholders sent a letter to the company's board pressing for an annual meeting after receiving no word of one with the deadline just days away.

Many shareholders have been miffed by Musk's participation in the Trump administration this year, saying he needs to focus on his EV company which is facing extraordinary pressures.

“An annual meeting provides shareholders with the opportunity to hear directly from the board about these concerns, and to vote for or against directors, the board’s approach to executive compensation, and other matters of material importance,” the group said in the letter.

The group cited Texas law, which requires companies to schedule annual shareholders meetings within 13 months of the prior annual meeting.

Tesla’s last shareholders meeting was on June 13 of last year, where investors voted to restore Musk’s record $44.9 billion pay package that was thrown out by a Delaware judge earlier that year.

Also on Thursday, Musk that the Grok chatbot will be heading to Tesla vehicles.

“Grok is coming to Tesla vehicles very soon. Next week at the latest,” Musk said on social media platform X, in response to a post stating that Grok implementation on Teslas wasn't announced on a Grok livestream Wednesday.

Grok was developed by Musk’s artificial intelligence company xAI and pitched as an alternative to “woke AI” interactions from rival chatbots like Google’s Gemini, or OpenAI’s ChatGPT.

Shares of Tesla rose 3% at the opening bell after tumbling this week when the feud between Trump and Musk heated up again.

Greentown Labs names Lawson Gow as its new Houston leader

head of hou

Greentown Labs has named Lawson Gow as its Head of Houston.

Gow is the founder of The Cannon, a coworking space with seven locations in the Houston area, with additional partner spaces. He also recently served as managing partner at Houston-based investment and advisory firm Helium Capital. Gow is the son of David Gow, founder of Energy Capital's parent company, Gow Media.

According to Greentown, Gow will "enhance the founder experience, cultivate strategic partnerships, and accelerate climatetech solutions" in his new role.

“I couldn’t be more excited to join Greentown at this critical moment for the energy transition,” Gow said in a news release. “Greentown has a fantastic track record of supporting entrepreneurs in Houston, Boston, and beyond, and I am eager to keep advancing our mission in the energy transition capital of the world.”

Gow has also held analyst, strategy and advising roles since graduating from Rice University.

“We are thrilled to welcome Lawson to our leadership team,” Georgina Campbell Flatter, CEO of Greentown Labs, added in the release. “Lawson has spent his career building community and championing entrepreneurs, and we look forward to him deepening Greentown’s support of climate and energy startups as our Head of Houston.”

Gow is the latest addition to a series of new hires at Greentown Labs following a leadership shakeup.

Flatter was named as the organization's new CEO in February, replacing Kevin Dutt, Greentown’s interim CEO, who replaced Kevin Knobloch after he announced that he would step down in July 2024 after less than a year in the role.

Greentown also named Naheed Malik its new CFO in January.

Timmeko Moore Love was named the first Houston general manager and senior vice president of Greentown Labs. According to LinkedIn, she left the role in January.