Remote Telemetry System and Empirical Data Generation
What makes Kathairos’ data superior to other systems?
Kathairos’ onsite telemetry system allows for precise sensor-driven insights and operational analysis, and invaluable empirical data showing vent rates, volumes, and pneumatic actuation trends over time. With 24/7 access to these real-time data readings from the remote telemetry system, which can be connected either by cellular or satellite network, the producer can view liquid nitrogen levels, pressure, temperature and more, by site, project, and organization. Finally, if a producer also chooses to tie the Kathairos data feed into its own SCADA system, we are more than happy to accommodate that as well.
What happens if a tank runs out of liquid nitrogen?
Every Kathairos unit comes equipped with cellular or satellite telemetry, which wirelessly alerts our web-based data portal and the Kathairos distribution network when tanks require refilling. In the unlikely event that the tanks cannot be refilled (weather event, flooding, road closures, etc.), the well-site simply switches back to natural gas during the interim. This is possible thanks to the inert nature of nitrogen, and the fact that the Kathairos system never introduces air (or oxygen) into your lines. However, while a return to fuel gas operation is indeed possible, our more than 5 million hours of operation to date and 99.999% uptime ratio points to the fact that it is indeed a very rare occurrence that weather, road conditions, or other undesirable event will get in the way of us showing up to refill a tank on time.
How do you prioritize which tanks to fill?
Our state-of-the-art dispatch platform utilizes real-time tank data to determine exactly what tanks need to be filled and when. In addition to providing ongoing operational data, the system also flags any tank experiencing a notable change in its normal nitrogen consumption rate. This information is immediately assessed and sent on to the Kathairos field crew responsible for that tank’s operations for further assessment and intervention.
Emission Offsets and Carbon Accounting
What are emission offsets?
Emission offsets, commonly referred to as carbon credits, are produced when greenhouse gas emissions are reduced beyond the required regulatory amount in a given jurisdiction. One emission offset is generated for every ton of CO2e that is averted. These offsets can then be purchased for compliance purposes by emitters who exceed their regulated emissions allowances, making them highly valuable entities.
Can nitrogen be used to generate carbon credits in Alberta?
Absolutely. The Alberta Government has approved nitrogen for use in eliminating methane emissions from pneumatic devices.
Are emission offsets valuable?
Yes, very. In Canada, the 2024 price on carbon is $80/tonne in 2024, rising $15 per year until it reaches $170/tonne in 2030. As the carbon price increases, so too does the value and demand for verified offsets. While carbon pricing may seem somewhat straightforward, the process for developing and serializing offsets can be complex and unfamiliar to companies wishing to participate in the carbon market, which is where Kathairos’ seasoned carbon accounting team comes in.
Does Kathairos offer carbon accounting and verification services?
Yes, we sure do! Kathairos is proud to serve as both a field-level solutions provider, and an industry-leading carbon accounting firm. By overseeing all risks and tasks involved in the emission offset regulatory process in Alberta and similar processes in other jurisdictions, Kathairos supports today's energy-producing organizations in focusing on the societal and financial benefits of their decarbonization projects, not the paperwork.
Is the system still affordable if sites don't qualify for carbon credits?
Yes, absolutely. The cost of the Kathairos system is driven by variable liquid nitrogen consumption, which is directly related to methane eliminated. Other systems need to be sized for maximum demand regardless of whether certain devices are only run seasonally. In addition, thanks to our unique tank leasing and nitrogen refill model, there are no upfront capital costs.
Whether you’re claiming emission offset credits or not, the overall economics of the Kathairos system make it suitable for well sites of all sizes.
How effective and accurate is nitrogen in quantifying carbon offset credits?
Quantifying avoided emissions can be challenging for most air, solar, and electric systems due to inaccuracies resulting from estimations. This results in higher scrutiny of ESG claims. The Kathairos system is highly accurate by comparison due to a number of reasons. Namely, it is a closed system, the volume of liquid nitrogen is closely measured, and we know that every unit of nitrogen used displaces exactly 1.2764 units of methane. In other words, the nitrogen volume utilized is measured with a high degree of accuracy and is directly proportional to the amount of methane mitigated thanks to a Gas Equivalence Ratio (GER) of 1.2764.
Offsets Economics
Is it financially beneficial to switch from fuel gas to nitrogen for pneumatic devices under Alberta's TIER emissions program?
Absolutely. Many of Kathairos' clients in Alberta are experiencing financial gains through Alberta's TIER emissions program. This benefit extends across various site conditions, including medium to high vent rates, and even to certain sites with low vent rates.
How does the cost-effectiveness of nitrogen compare to alternative solutions?
When considering the total cost of ownership, nitrogen proves to be highly cost-effective. Unlike instrument air systems, which generally incur substantial initial and ongoing costs including initial capital purchase, delivery, engineering, and tie-in, nitrogen also avoids the additional burdens of power or fuel costs, carbon taxes, maintenance, and downtime expenses.
Environmental Footprint
Does the Kathairos solution produce any onsite emissions?
There are no onsite emissions produced from the Kathairos solution since our tanks do not involve any combustion or require any onsite power (i.e. generators, grid tie-in, flaring, etc.)
What is the carbon footprint of the Kathairos system?
There are no onsite emissions associated with the Kathairos system, and the emissions generated during the production and transport of liquid nitrogen are extremely minimal. CO2 emissions generated fluctuate depending on well site location and distance to a nitrogen production plant or our regional storage facility, but on average, for every 100 tons of CO2 eliminated, less than 1 ton of CO2 is produced during production and transport. This amounts to less than 1% of the total emissions eliminated, and a very low carbon intensity solution to eliminating methane emissions.
Typical scenario: 55kg of liquid nitrogen is required to eliminate 1 ton of CO2e emissions in a typical remote well site. With an expansion ratio of ~700:1, this amount of liquid nitrogen converts into 46 standard cubic meters (Sm3) of gaseous nitrogen (N2), which then replaces 59 Sm3 of methane given its gas equivalency ratio (GER) of 1.2764. In this case, less than 20kg CO2e is created during the production and transportation of 55kg of liquid nitrogen. Put another way, the net emissions reduction in this example is 980 kg CO2e