American Oil and Gas Reporter - May 2023 - 59

SpecialReport: Engine & Compression Tech
The producing companies most severely impacted by IRA's
Methane Emissions and Waste Reduction Incentive Program
are midstream oil and gas companies with large fleets of leanburn
engines. These fleets will have the lowest fee threshold
factor and the highest engine CH4 emission factors. As such,
the incentive to reduce methane emissions (and their associated
taxes) are high, but so can be the cost.
Major maintenance events can also be expensive, but a
lean-burn to rich-burn conversion at the time of major overhaul
can be a way to leverage existing operating budgets to help
achieve emissions (and tax) reductions. For example, OEM
remanufactured engine exchange programs can help facilitate
engine swap outs or exchanges, seamlessly transitioning from
lean-burn combustion into the latest Miller cycle rich-burn
technology. The Miller cycle rich-burn technology engines
are on par with lean-burn fuel consumption but with a much
lower CH4, and therefore CO2e, footprint. Other emissions
such as nitrogen oxides and volatile organic compounds can
also be reduced by transitioning from lean-burn to rich-burn.
In addition, the methane fee is averaged over entire fleets as
opposed to at individual sites. There is still time to act before
the methane fee goes into effect. To target package emissions, a
quick remediation is to reduce the CH4 emitted from the
package, especially pneumatic items that are powered by gas or
vents. Targeting and mitigating engine CH4 emissions requires
additional planning. Since an engine is typically overhauled
once every six-plus years, this interval becomes the most economical
time to target an upgrade and start reducing or eliminating
applicable methane fees.
Furthermore, combining engine overhauls with emissions
reductions generates multiple synergies: increased profitability,
reduced emissions, cleaner communities, attraction of a new
skilled workforce, and the continued investment in the technologies
required to grow economies and improve the quality of life
around the globe.
The world needs access to hydrocarbons now more than
ever. The United States has the reserves, the infrastructure and
technology to grow the production and export capacity to
bring clean-burning natural gas to places where it is needed
most. The oil and gas industry is well-positioned to continue
innovating, supported by collaboration between industry and
policymakers, to implement the technologies available to
achieve the lowest methane and carbon footprint. The world
needs more energy and lower emissions; and fortunately, the
technologies are available today to simultaneously accomplish
both of these goals.
❒
CHRIS
KIPP
Chris Kipp is a senior business development manager at INNIO's Waukesha Engine. Over
his 12-year tenure with the company, he has held technical positions in application engineering,
product management and sales. In his current role, Kipp helps end customers achieve ESG
goals with Waukesha's upgrade and remanufacturing programs. He holds a B.S. in mechanical
engineering from the Milwaukee School of Engineering and an M.B.A. from the University of
Wisconsin-Madison.
SHEILA
MEEHAN
Sheila Meehan is a strategic marketing manager at INNIO's Waukesha Engine. She has
spent more than 25 years in various marketing roles driving product visibility and strategic
growth plans for a range of industrial products and services, including reciprocating engines
and power systems across the oil and gas and power generation markets. Meehan holds a B.A.
in communications from the University of Wisconsin-Whitewater.
MAY 2023 59

American Oil and Gas Reporter - May 2023

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