TetraHydro Solutions Update on Carbon Credits and BCarbon Methodology

May 7, 2025 cmd2011

TetraHydro Solutions and our service groups work in an emerging industry that generates carbon credits by plugging orphan and abandon wells to generate high quality carbon credits, primarily utilizing the BCarbon methodology for accreditation (or alternative methodology as needed) in support of organizations globally that are committed to meeting climate goals.

TetraHydro currently have access to market sales of >3 million high quality carbon credits (equal to >3 million tons of CO2 emissions eliminated) using the BCarbon methodology and protocol, with expectations to generate millions more credits to market in the near term. Organizations worldwide can now purchase High-Quality carbon credits from verified well-plugging projects to offset emissions and help achieve Net Zero Goals.

This work has positioned TetraHydro and our service groups as leaders in methane emissions reduction, and as valuable contributors to the carbon credits offset market; and to support organizations committed worldwide to meeting climate goals.

Methodology & Coordination
TetraHydro uses BCarbon’s superior analytical approach to determining the specific wells’ methane credits by calculating leak volume through a rigorous and industry-accepted decline and leak analysis pre-screening model.

This screening and planning work is performed according to BCarbon’s Protocol before actual well plugging proceeds at the site to assure accreditation ahead of site work and plugging expense. TetraHydro and their partners also maintain a robust inventory of future valuable well plugging projects.

TetraHydro also maintains close relationships with State Agencies and Oil & Gas Operators to help facilitate well-plugging projects to generate carbon credits, whether for orphan or idle wells.

Background & Growth Objectives
The U.S. Environmental Protection Agency (EPA) Inventory of U.S. Greenhouse Gas Emissions and Sinks report that there are an estimated 3.7 million idle oil and gas wells (including orphaned wells and other non-producing wells) just within the United States. Plugged wells each emit on average less than 1 kg methane per year, while unplugged wells have been known to emit tens of thousands of kilograms of methane per year contributing heavily to GHG emissions.

TetraHydro and service parterns pursue this attractive market opportunity targeting these high-density areas for well remediation and leveraging various funding sources. The company will continue to generate carbon credits while addressing environmental concerns. About 65% of these wells are concentrated in just five states (50% in Texas, Oklahoma, Louisiana and Kansas) as highlighted in the map and chart on the following page.