On Thursday, Project Canary, the “energy-tech” B-corp that helps energy producers monitor their emissions of methane and other pollutants, announced a landmark pilot project in the state of Colorado. The company will join with Colorado Springs Utilities, Colorado Interstate Gas Company (a subsidiary of Kinder Morgan), and Rimrock Energy, a midstream energy company in the Denver-Julesburg Basin, on a Responsibly Sourced Gas (RSG) pilot. The project, connecting a natural gas producer, a municipal utility, and an infrastructure company, is the first of its kind in the United States.
The pilot will extend across the energy value chain, from RSG production, transportation and marketing for local community and consumer use in Colorado. Colorado Springs Utilities will purchase certified RSG, produced by Bayswater Exploration & Production, a Denver oil and natural gas development company. The certified RSG will be gathered and processed by Rimrock Energy Partners, then delivered to Colorado Interstate Gas Company, and finally transported to Colorado Springs Utilities. Project Canary will provide its own technologies, data monitoring to measure methane emissions, as well as its independent RSG certification.
As a member of the ONE Future Coalition, Kinder Morgan (parent company of Colorado Interstate Gas Company) is one of 38 natural gas companies that have agreed to voluntarily reduce methane emissions across the natural gas value chain to 1 percent or less by 2025.
“Sustainability progress in the energy space is evolving rapidly and this exciting pilot project builds upon Project Canary’s unique position in the marketplace of delivering meaningful data-driven solutions,” said Project Canary Co-Founder and CEO Chris Romer, commenting on the landmark project.
To date, Project Canary has partnered with nearly two-dozen large exploration and production, pipeline, and utility companies and deployed its technology across 100 different well pads, including in Colorado, where the state has nation-leading on-site emissions monitoring regulations.
“This partnership will allow us to further diversify our energy portfolio and expand our commitment to environmental stewardship,” said Colorado Springs Utilities CEO Aram Benyamin. “This is the first of its kind pilot project in the nation and I’m proud to say we are at the forefront of exploring this newly-evolving Responsibly Sourced Gas market.”
Calling the pilot a “win-win partnership,” Bayswater Exploration & Production President and CEO Steve Struna said the Project Canary project would allow the firm to demonstrate that it responsibly develops clean natural gas by using real-time, continuous emission monitoring data and operational best practices.
Bayswater has continuous monitoring on over 90 percent of its Colorado production and will aim to attain TrustWell certification of “Gold” or better for its Weld County operations, which will contribute to the pilot project. Kinder Morgan will transport gas purchased by Colorado Springs Utilities from Bayswater through its Colorado Interstate Gas Company pipeline.
“Kinder Morgan has worked with Colorado Springs Utilities for over 90 years to provide reliable and affordable natural gas to communities and businesses in Colorado,” said Kinder Morgan Natural Gas Pipelines Commercial Vice President Will Brown. “We are excited to be part of this industry-led pilot as we evaluate new opportunities to responsibly deliver low-carbon energy for the benefit of the people, communities and business we serve.”
“We recognize the importance of sustainable and reliable midstream services to our customers and community stakeholders and are proud to play a part in the low carbon transition,” said Josh Cruzan, CEO of Rimrock Energy Partners. “Rimrock looks forward to making a positive impact in the gathering, processing, and marketing of RSG.”
Pilots, pilots, pilots
Earlier this month, Project Canary announced that two Denver-based companies would partner to produce and certify RSG for wells owned by UP Energy in the state of Wyoming, and fed into regional natural gas distribution networks.
And in January, EQT Corporation, the largest producer of natural gas in the United States, which operates primarily in the Marcellus and Utica Shales in the Appalachian Basin, announced that it would also partner with Project Canary on a pilot project. Under the partnership, EQT is to produce RSG through third-party certification of two of its well pads, which would be continuously monitored for methane emissions using Project Canary’s “Canary X” devices. Per January’s announcement, an unnamed global energy company agreed to purchase a portion of the RSG produced from the pilot.
