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Spotted: According to the International Energy Agency, oil and gas operations account for around 15 per cent of total energy-related emissions globally. On top of this, as oil and gas wells age, their emissions increase dramatically and at a certain point, the emissions outweigh any value created by the energy production. That’s where ClimateWells comes in.

ClimateWells partners with businesses to fund the cost of plugging orphaned wells, creating energy transition credits once an oilfield has been shut down. The company uses its database of more than 120,000 orphaned wells (wells with no owner on record) to help customers prioritise where they can invest to make the greatest impact.

By plugging wells, ClimateWells is keeping carbon in the ground before it can be released, tackling emissions proactively. The company also focuses on marginal wells, which are major sources of methane emissions – a much more potent greenhouse gas than carbon dioxide. And, because old wells can leak oil and gas into the local environment, causing air and water pollution, plugging the wells can directly benefit the health of local communities.

While most carbon credit programmes are aimed at the broader goal of reducing overall global emissions, ClimateWells focuses on local community benefits for the customers of the businesses it partners with. For example, a utility company can earn credits by decommissioning oil and gas wells in the communities it serves, or an auto manufacturer can decommission wells in and around its headquarters or assembly plants.

In 2022, the US government launched its own $4.7 billion initiative to start plugging orphaned wells. But with hundreds of thousands of marginal and orphaned wells in the States., there is plenty of room for ClimateWells. The company has completed a pre-seed funding round, and finished its first project in Los Angeles.

Written By: Lisa Magloff