Ms. Catherine Flax reports

ZEFIRO LANDS ITS FIRST-EVER METHANE MONITORING CONTRACT AS PART OF THE EPA'S METHANE EMISSIONS REDUCTION PROGRAM (MERP)

Zefiro Methane Corp. has been awarded its very first slate of project work that primarily consists of methane monitoring, marking a strategic expansion of Zefiro's business into this rapidly growing category of environmental services. The West Virginia Department of Environmental Protection (WVDEP) has awarded Zefiro a project consisting of preplugging and postplugging methane quantification, in addition to locating oil/gas wells for the purpose of identifying them as candidates to be plugged. Based on an increased scope of work provided by the WVDEP, Zefiro will realize approximately $800,000 (U.S.) in revenue from carrying out this project as a subcontractor to North Wind Site Services.

This project is funded under the Inflation Reduction Act through its methane emissions reduction program (MERP), which provides $1.36-billion (U.S.) in financial and technical assistance to accelerate methane and other greenhouse gas (GHG) emissions reductions in the oil and natural gas sector. In a news release dated Dec. 20, 2024, the U.S. Environmental Protection Agency (EPA) and U.S. Department of Energy (DOE) announced $850-million (U.S.) in funding specifically for reducing, monitoring, measuring and quantifying methane emissions from the oil and gas sector.

The addition of methane monitoring to Zefiro's core services complements its existing business activities in the areas of environmental remediation and the origination of institutional-grade carbon emission offsets. Zefiro's field personnel meet several key requirements for methane emission measurement work, including a minimum 480 hours of field experience in screening, measurement and quantification in accordance with U.S. DOE National Energy Technology Laboratory (NETL) standards.

Through funding from the Inflation Reduction Act, Zefiro will conduct preplugging and postplugging measurements for an allotment of well sites in West Virginia in order to quantify the amount of methane emissions removed from the plugging of each well.

Zefiro interim chief executive officer Catherine Flax commented: "Methane monitoring is something that we were already doing at Zefiro as part of our due diligence in originating carbon offsets, in order to quantify the amount of emissions that are being abated as the result of a given well remediation project. However, performing methane monitoring as a stand-alone revenue-generating service unlocks an opportunity for us to drive value from tasks that we would otherwise ordinarily be performing using existing equipment and crew members."

Ms. Flax continued: "What makes methane monitoring especially attractive from a business perspective is that it is asset-light and operationally efficient. To elaborate, there are very low capex and opex burdens, meaning that this type of work tends to be profitable from the very beginning, and it is highly scalable as more U.S. states begin launching their MERP initiatives using funding from the Inflation Reduction Act. Out of the 27 states which have documented unplugged orphaned oil/gas wells, Zefiro currently has operations in five of these states (Ohio, New York, Pennsylvania, West Virginia and Oklahoma), which means there is significant upward potential for us to capture business in new markets for methane monitoring as demand for it continues to increase."

About Zefiro Methane Corp.

Zefiro is an environmental services company, specializing in methane abatement. Zefiro strives to be a key commercial force toward active sustainability. Leveraging decades of operational expertise, Zefiro is building a new tool kit to clean up air, land and water sources directly impacted by methane leaks. The company has built a fully integrated ground operation driven by an innovative monetization solution for the emerging methane abatement marketplace. As an originator of high-quality United States-based methane offsets, Zefiro aims to generate long-term economic, environmental and social returns.

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