Why Verra Supports Carbon Capture from Natural Gas Processing

Carbon capture associated with fossil fuel systems is controversial—and for good reason. Poorly designed interventions can delay the transition away from fossil fuels, entrench high-emitting infrastructure, and undermine global net-zero goals.

Verra takes these risks seriously and has therefore established strict criteria governing which activities are eligible for crediting under the Verified Carbon Standard (VCS) Program—and why some activities are explicitly excluded.

The recently approved module, VMD0062: CO₂ Capture from Natural Gas Processing Plants, a new module under Verra’s carbon capture and storage methodology (VM0049) illustrates this conscious decision-marking. It exists to address a specific and unavoidable emissions source in a way that is fully compatible with the net-zero transition and consistent with the requirements of the Integrity Council for the Voluntary Carbon Markets (ICVCM) under which Verra’s VCS Program is approved.

Natural gas is typically used for electricity generation, powering industrial processes, serving a feedstock for fertilizer production, and heating commercial and home spaces. Consumption of natural gas is expected to increase with greater industrialization in developing economies. Therefore, measures are needed to minimize the emissions associated with natural gas processing.

Before they reach consumers, raw natural gas streams must be processed to remove impurities, including carbon dioxide (CO₂). This CO₂, referred to as acid gas, is corrosive and damages the gas supply network or the equipment at the site of consumption, and is therefore separated out to protect infrastructure and ensure safety. Currently, in the absence of carbon capture and storage (CCS) activities related to these processes, the CO₂ is typically released into the atmosphere through venting, flaring, or incinerating with other acid gases.

The resulting emissions occur regardless of downstream demand and consumer behavior, and regardless of whether gas use ultimately declines over time. They are a by-product of processing gas that is currently being produced.

This is where VMD0062 plays an important role. It enables projects to quantify the greenhouse gas (GHG) emission reductions resulting from the permanent storage of carbon dioxide that would otherwise be emitted (vented, flared, or incinerated) during natural gas processing. Projects can use VMD0062 in conjunction with VM0049 to generate carbon credits. Previously Verra published capture modules (VMD0056 Capture from Air [DACCS] and VMD0059 Capture from Bioenergy [BECCS]) under the same methodology. Together, these modules encourage the expansion of hubs for CO₂ capture, transport, and storage, which improves efficiency and cost effectiveness of these activities.

Revenue from carbon credits generated by projects using VMD0062, in particular, can support the installation of capture, transport, and storage infrastructure—helping to overcome these well-documented barriers to deploying CCS for these emissions sources.

A key question to address in this context is: “Does crediting these activities prolong fossil fuel use, and ultimately prevent the world from reaching its net-zero goal(s)?”

The short answer is “no.”

The longer answer lies in Verra’s commitment to advance a transition to net zero and in how Verra applies its net-zero compatibility requirements.

As an ICVCM-approved program, Verra is committed to ensuring that all creditable activities in the VCS Program are compatible with the transition to net zero (see “VCU Attributes” in the VCS Program Guide, v5.0 and criterion 13.1 of the ICVCM Assessment Framework). Activities that risk entrenching consumer behavior, business practices, or physical infrastructure that prolongs unabated fossil fuel use are not eligible under the VCS Program.

Let’s take a closer look at how these requirements play out in this case, i.e., why crediting emission reductions from natural gas processing does not entrench 1) consumer behavior and 2) business practices and physical infrastructure.

Consumer Behavior

Consumers use natural gas out of necessity, i.e., because their existing appliances and space heating equipment are gas-fired, and local distribution utilities have infrastructure in place to supply it. In many cases, there are no alternative options. Further, consumers are disconnected from the gas supply chain. They rarely have the option to select a source for their gas, know how it is processed, or know its origin.

Incorporating CCS at the processing stage does not increase consumption, extend use, or change demand patterns, and VMD0062 therefore does not drive consumer lock-in.

Business Practices and Physical Infrastructure

Verra analyzed the economics of the natural gas supply chain to determine the extent to which VMD0062 impacts business practices and physical infrastructure.

The economics of gas production are driven by the sale of natural gas and natural gas liquids. Revenue associated with carbon credits generated under VMD0062 is small relative to total project revenues and is only sufficient to address the additional costs of capturing, transporting, and storing CO₂ that would otherwise be emitted. In other words, this carbon finance would incentivize the emission reduction, but not new upstream extraction or production facilities.

Capturing CO₂ from acid gas removal does not improve the efficiency of gas use, does not lower delivered energy costs, does not enhance the competitiveness of natural gas relative to low-carbon alternatives, and does not extend the economic lifetime of gas assets.

It simply mitigates emissions that occur under all plausible transition pathways.

To be explicit, VMD0062 does not do the following:

• Extend asset lifetimes or improve competitiveness
• Subsidize fossil fuel extraction or exploration
• Prolong the use of unabated fossil fuel infrastructure
• Undermine global or national net-zero targets

Any activity that would have these effects would be disallowed under the VCS Program.

At Verra, we seek to maximize all opportunities to advance climate action. We consider every approach that has a quantifiable and significant climate impact and benefits people and the planet, including CO₂ capture from acid gas removal in natural gas processing plants.

In a world where some natural gas infrastructure will persist during the transition to net zero, reducing unavoidable processing emissions is preferable to allowing them to continue unabated.

VMD0062 represents a narrowly scoped, carefully governed intervention that reduces emissions today—without compromising the climate goals of tomorrow.