2022 Lab Endorsement of the first investment opportunity to remove methane emissions from reservoirs

We are proud that The Global Innovation Lab for Climate Finance endorsed the Reservoir Methane Capture Mechanism. We are incredibly grateful for being part of the 2022 Lab and for taking part in an intense six-month acceleration programme.

Whilst most hydropower reservoirs have a very low carbon footprint, some hydropower reservoirs can emit large quantities of methane. These methane emissions are both a powerful greenhouse gas and a wasted resource – when captured they can be sold as carbon credits and energy. New methane capture technologies are becoming available, but limited financing mechanisms prevent them from scaling.

We created a new financial instrument that rewards investment in methane capture from hydropower reservoirs, starting in Brazil.

This instrument is centred around a special purpose vehicle (SPV) led by Open Hydro, which manages the methane capture and biogas assets. Bluemethane measures the methane concentrations and designs the methane capture technology, while a local developer will be responsible for the biogas installation. The hydropower operator provides water usage rights. The SPV generates revenues from energy sales and carbon credits, and will be implemented across Brazil, creating a bigger market opportunity that makes methane capture more attractive to investors.

At scale in Brazil, this instrument has the potential to reduce the equivalent of 6.8 million tons of CO2e, improve access to clean energy, create green jobs and foster gender diversity.

Thank you so much to the Lab and its amazing network of global investors.

If you want to learn more, click here.

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