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Pioneer Energy Selected by Department of Energy for $27 Million to Advance Methane Emission Reduction from Oil Production

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Pioneer Energy has secured $27 million in DOE funding through four distinct awards. The primary focus is on advancing their Emission Control Treater™ (ECT), a revolutionary zero-emissions well pad production technology that can boost crude yield by 5-10%. Three awards totaling $21 million will support ECT development across different applications, including a $10MM commercial-scale project, a $6MM sour crude processing initiative, and a $5MM marginal wells program.

The ECT technology eliminates routine flaring, removes the need for atmospheric storage tanks, and improves separation efficiency. It features cloud-connected automation for remote monitoring and control, reducing operational costs. The fourth grant, worth $6MM, partners with Emvolon to develop a flare gas to methanol system. All projects will undergo extended field demonstrations, with emissions reduction validation by Colorado School of Mines and Montrose Environmental Group.

Pioneer Energy ha ottenuto 27 milioni di dollari di finanziamenti dal DOE attraverso quattro distinti premi. L'obiettivo principale è quello di far progredire il loro Emission Control Treater™ (ECT), una tecnologia rivoluzionaria per la produzione di pad di pozzi a zero emissioni, che può aumentare il rendimento di greggio del 5-10%. Tre premi, per un totale di 21 milioni di dollari, sosterranno lo sviluppo dell'ECT in differenti applicazioni, incluso un progetto commerciale su larga scala da 10 milioni di dollari, un'iniziativa di lavorazione di greggio acido da 6 milioni di dollari e un programma per pozzi marginali da 5 milioni di dollari.

La tecnologia ECT elimina la combustione routinaria, rimuove la necessità di serbatoi di stoccaggio atmosferico e migliora l'efficienza di separazione. Presenta automazione connessa al cloud per il monitoraggio e il controllo a distanza, riducendo i costi operativi. Il quarto finanziamento, del valore di 6 milioni di dollari, collabora con Emvolon per sviluppare un sistema per la conversione del gas di combustione in metanolo. Tutti i progetti subiranno estese dimostrazioni sul campo, con validazione della riduzione delle emissioni da parte del Colorado School of Mines e del Montrose Environmental Group.

Pioneer Energy ha conseguido 27 millones de dólares en financiación del DOE a través de cuatro premios distintos. El enfoque principal es avanzar en su Emission Control Treater™ (ECT), una revolucionaria tecnología de producción en plataformas de pozos con cero emisiones que puede aumentar el rendimiento del crudo en un 5-10%. Tres premios que suman un total de 21 millones de dólares apoyarán el desarrollo del ECT en diferentes aplicaciones, incluida un proyecto comercial a gran escala de 10 millones de dólares, una iniciativa de procesamiento de crudo ácido de 6 millones de dólares y un programa para pozos marginales de 5 millones de dólares.

La tecnología ECT elimina la quema rutinaria, elimina la necesidad de tanques de almacenamiento atmosférico y mejora la eficiencia de separación. Cuenta con automatización conectada a la nube para el monitoreo y control remoto, reduciendo los costos operativos. La cuarta subvención, por valor de 6 millones de dólares, se asocia con Emvolon para desarrollar un sistema de conversión de gas de antorcha a metanol. Todos los proyectos se someterán a extensas demostraciones de campo, con validación de la reducción de emisiones por parte de la Escuela de Minas de Colorado y el Grupo Ambiental de Montrose.

Pioneer Energy는 네 가지의 별도 상을 통해 DOE로부터 2700만 달러의 자금을 확보했습니다. 주요 초점은 원유 수익률을 5-10% 증가시킬 수 있는 혁신적인 제로 배출 굴착 패드 생산 기술인 Emission Control Treater™ (ECT)의 발전에 있습니다. 총 2100만 달러에 달하는 세 가지의 상은 1000만 달러 규모의 상업 프로젝트, 600만 달러 규모의 신속한 원유 가공 이니셔티브, 500만 달러 규모의 한계 우물 프로그램 등 다양한 애플리케이션에서 ECT 개발을 지원합니다.

ECT 기술은 정기적인 연소를 제거하고 대기 저장 탱크의 필요성을 없애며 분리 효율성을 개선합니다. 원격 모니터링 및 제어를 위한 클라우드 연결 자동화를 특징으로 하여 운영 비용을 절감합니다. 네 번째 보조금, 600만 달러 규모는 Emvolon과 협력하여 배출가스를 메탄올로 전환하는 시스템을 개발합니다. 모든 프로젝트는 광범위한 현장 시연을 거치며, 탄소 배출 감소는 콜로라도 광산학교와 몬트로즈 환경 그룹에서 검증됩니다.

Pioneer Energy a obtenu 27 millions de dollars de financement du DOE à travers quatre subventions distinctes. L'accent principal est mis sur l'avancement de leur Emission Control Treater™ (ECT), une technologie révolutionnaire de production de plate-forme de puits à zéro émission, qui peut augmenter le rendement en brut de 5 à 10 %. Trois subventions totalisant 21 millions de dollars soutiendront le développement de l'ECT dans différentes applications, y compris un projet à grande échelle de 10 millions de dollars, une initiative de traitement de brut acide de 6 millions de dollars et un programme pour puits marginaux de 5 millions de dollars.

La technologie ECT élimine les torchères routinières, supprime la nécessité de réservoirs de stockage atmosphérique et améliore l'efficacité de séparation. Elle dispose d'une automatisation connectée au cloud pour la surveillance et le contrôle à distance, réduisant ainsi les coûts d'exploitation. La quatrième subvention, d'une valeur de 6 millions de dollars, s'associe à Emvolon pour développer un système de conversion de gaz de torchère en méthanol. Tous les projets feront l'objet de démonstrations de terrain prolongées, avec validation de la réduction des émissions par l'école des mines du Colorado et le groupe environnemental de Montrose.

Pioneer Energy hat 27 Millionen Dollar an Fördermitteln des DOE durch vier verschiedene Auszeichnungen gesichert. Der Schwerpunkt liegt auf der Weiterentwicklung ihres Emission Control Treater™ (ECT), einer revolutionären Null-Emissionen-Technologie zur Ölbohrung, die die Rohölausbeute um 5-10% steigern kann. Drei Auszeichnungen in Höhe von insgesamt 21 Millionen Dollar werden die Entwicklung des ECT in verschiedenen Anwendungen unterstützen, darunter ein kommerzielles Projekt im Maßstab von 10 Millionen Dollar, eine Initiative zur Verarbeitung von saurem Rohöl im Umfang von 6 Millionen Dollar und ein Programm für marginale Bohrlöcher im Wert von 5 Millionen Dollar.

Die ECT-Technologie beseitigt die routinemäßige Verbrennung, beseitigt die Notwendigkeit von atmosphärischen Lagertanks und verbessert die Trenneffizienz. Sie verfügt über eine cloudverbundene Automatisierung für Fernüberwachung und -steuerung, die die Betriebskosten senkt. Der vierte Zuschuss in Höhe von 6 Millionen Dollar arbeitet mit Emvolon zusammen, um ein System zur Umwandlung von Abgasen in Methanol zu entwickeln. Alle Projekte werden umfangreichen Feldversuchen unterzogen, mit Validierung der Emissionsreduzierung durch die Colorado School of Mines und die Montrose Environmental Group.

Positive
  • Secured $27 million in DOE funding across four projects
  • ECT technology increases crude yield by 5-10%
  • Zero routine flaring and emissions reduction capabilities
  • Cloud automation reduces operational costs
  • Multiple commercial partnerships for field trials secured
Negative
  • Technology still requires extensive field testing and validation
  • Commercial deployment not expected until Q4 2025

Insights

The $27 million DOE funding represents a substantial validation of Pioneer Energy's ECT technology. The financial implications extend beyond the immediate capital injection. The technology's ability to increase crude yield by 5-10% while eliminating routine flaring presents a compelling value proposition for oil producers. For Montrose Environmental (MEG), this partnership provides strategic positioning in the emerging methane reduction technology verification space.

The commercial deployment timeline starting Q4 2025 suggests revenue impact will begin in 2026. The partnership with established operators like Bayswater, Prairie Operating (PROP) and Diversified Energy (DEC) significantly de-risks the technology's market adoption. The modular design approach should accelerate market penetration by allowing flexible CAPEX deployment across different well sizes.

The ECT technology represents a significant advancement in emission control systems. The closed-loop design eliminates routine flaring while improving separation efficiency - a rare combination that addresses both environmental and operational challenges. The cloud-connected automation platform adds another layer of operational efficiency through remote monitoring and control capabilities.

The technology's adaptability across different applications - from high-volume commercial wells to marginal conventional wells and even sour crude processing - demonstrates remarkable versatility. For Montrose Environmental, their role in third-party assessment strengthens their position in environmental compliance and verification services, particularly valuable as regulatory pressures on methane emissions intensify.

This development signals a major shift in oil production technology adoption. With increasing regulatory pressure on emissions reduction, Pioneer Energy's ECT positions Montrose Environmental (MEG) strategically in the verification and compliance sector. The involvement with multiple established operators and the DOE's substantial backing indicates strong market confidence in the technology's commercial viability.

The timing aligns with intensifying global focus on methane emissions reduction, particularly relevant given recent EPA regulations. For MEG shareholders, this partnership enhances the company's credibility in environmental verification services and could lead to expanded market opportunities as the technology scales across different well types and regions.

LAKEWOOD, Colo.--(BUSINESS WIRE)-- Pioneer Energy announced today they have been selected by the U.S. Department of Energy for four different awards which collectively total $27 million. Three of these are intended to advance the company’s Emission Control Treater™ (ECT), a breakthrough near zero emissions well pad production technology that can increase crude yield by 5-10%.

The ECT is a closed system that completely processes the crude, resulting in zero routine flaring with no need for atmospheric storage tanks. It performs better separation than existing phase separators, resulting in no flash gas left in the crude and a lot less heavy NGLs left in the gas. This new technology utilizes state-of-the-art, cloud-connected automation, giving operators the ability to not only monitor their production but also to control it remotely from a centralized dashboard, saving manpower, field trips, and maintenance costs. Additionally, the ECT is modular, which enables easier right sizing of equipment throughout the life of the well pad. This results in better CAPEX utilization and reduced lifetime total cost of ownership.

The fourth grant, in partnership with Emvolon, Inc., will advance a novel flare gas to methanol system.

Each project will involve extended demonstration of equipment on oil producer well pad locations. Colorado School of Mines and Montrose Environmental Group (NYSE:MEG) will provide third-party assessment of the flaring and methane emissions reductions achieved.

The projects are as follows:

Commercial Scale Turnkey Near Zero Emissions and Zero Flaring Oil Production Facility

This $10MM award by the DOE’s Office of Fossil Energy and Carbon Management (FECM) provides funds to scale the ECT from pilot to a commercial scale of 2,500 BPD and deploy units with Bayswater Exploration & Production and Prairie Operating (NASDAQ:PROP) for six-month field trials in Colorado. Work has already begun on this project with expected field deployment in Q4 2025.

Zero-Emission Sweetening & Stabilization Production Facilities for Sour Sites

Pioneer has been selected for this $6MM award by the DOE and EPA, which will provide funds to adapt the 2,500 BPD ECT for use in processing sour crude oil. The technology will be demonstrated in partnership with Bayswater Exploration and Production. In addition to demonstration of emissions reduction, the system is projected to sweeten the crude down to low sulfur concentration of parts per million.

Zero-Emission Drop-In Replacement Production Facilities for Marginal Conventional Wells

Pioneer has been selected for this $5MM award by the DOE and EPA, which will provide funds to scale down the ECT. These mini-ECT systems will be inexpensive, drop-in replacements for surface infrastructure at marginal wells. The technology will be demonstrated for 12 months on several sites operated by Diversified Energy Company PLC (LSE:DEC)(NYSE:DEC) in the Cotton Valley Basin in East Texas.

Methane Emission Mitigation through Onsite Methanol Synthesis

Pioneer has been selected for this $6MM award by the DOE and EPA, which will provide funds to package MIT invented gas to liquids technology, to convert flare gas to methanol. The work will be performed in collaboration with Emvolon, Inc., who has the exclusive rights to the technology. The technology will be demonstrated for 12 months in the Eagle Ford of Texas.

- - -

“We are thrilled to receive the support of the Department of Energy to help us scale and commercialize our zero emissions technology. Deploying our Emission Control Treater (ECT) will result in a substantial increase in oil revenues. The new grants will help us demonstrate the wide applicability of the ECT including processing sour crude, and for low producing wells, while simultaneously eliminating or greatly reducing unwanted flaring,” said Pioneer Energy’s CEO Eyal Aronoff. “At Pioneer Energy we believe that energy security is an important aspect of the energy transition, and that through deployment of innovative technology it can be achieved with nearly zero production site emissions.”

DOE Announcements:

U.S. DEPARTMENT OF ENERGY INVESTS $32 MILLION TO HELP ELIMINATE NATURAL GAS FLARING AT OIL PRODUCTION OPERATIONS
https://content.govdelivery.com/accounts/USDOEOFE/bulletins/39ca9c7

U.S. DEPARTMENT OF ENERGY AND U.S. ENVIRONMENTAL PROTECTION AGENCY ANNOUNCE $850 MILLION TO REDUCE METHANE POLLUTION FROM THE OIL AND GAS SECTOR
https://content.govdelivery.com/accounts/USDOEOFE/bulletins/3c8852e

Partner Links:

 

Emvolon:

https://emvolon.com/

Colorado School of Mines:

https://www.mines.edu/

Montrose Environmental:

https://montrose-env.com/

Bayswater Exploration & Production: https://bayswater.us/

Prairie Operating:

https://www.prairieopco.com/

Diversified Energy:

https://www.div.energy/

About Pioneer Energy

Pioneer Energy, Inc. is a provider of technologies that help the oil and gas industry to increase production revenues and decrease operational expenses, while also eliminating flaring and oilfield emissions. The company’s product lines include the Emission Control Treater™ (ECT), a zero-emission oil production system which increases crude production volumes; Pegasus field gas conditioning systems which save on fuel costs, decrease field operations costs, reduce emissions and improve uptime for well pad production and hydraulic fracturing operations; and flare gas capture and processing equipment. Pioneer’s systems help oil producers to be good stewards of the environment while converting emissions to resources which help to support domestic energy security. To learn more, visit http://pioneerenergy.com/.

Nicole Lane, Corporate Relations Officer

nlane@pioneerenergy.com

Joseph E. Palaia, IV, Vice President of Business Development

jpalaia@pioneerenergy.com

Source: Pioneer Energy, Inc.

FAQ

What is the total value of DOE grants awarded to Pioneer Energy for methane emission reduction?

Pioneer Energy received four DOE grants totaling $27 million for advancing methane emission reduction technologies in oil production.

How much can Pioneer Energy's ECT technology increase crude yield?

The Emission Control Treater™ (ECT) technology can increase crude yield by 5-10% while achieving near-zero emissions.

When will Pioneer Energy's commercial-scale ECT deployment begin?

The commercial-scale ECT deployment is expected to begin field trials in Q4 2025.

What is the capacity of Pioneer Energy's commercial-scale ECT system?

The commercial-scale ECT system will have a capacity of 2,500 BPD (Barrels Per Day).

How will Montrose Environmental Group (MEG) be involved in Pioneer Energy's projects?

Montrose Environmental Group (MEG) will provide third-party assessment of the flaring and methane emissions reductions achieved by Pioneer Energy's technologies.

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