Mitigating Natural Gas Emissions at Data Centers: RBN Energy’s Housley Carr Explains (Part 1)

     Carr begins by noting the different approaches that can be used to reduce data center natural gas emissions. Data centers require 24/7 power. Natural gas is the most suitable and practical power source. Natural gas power can be supplemented with solar and wind power, intermittent sources that can’t be used on their own due to intermittency and the availability of land for their large footprints. Data center owners can buy and retire environmental credits for low-methane-intensity (low-MI) gas. They can capture and sequester CO2 from the combustion of the gas (I don’t believe many are doing this yet). They could also buy power from nuclear energy plants or deploy small nuclear reactors. But, in the near term, natural gas will power data centers. Thus, the tech companies that own them, who had previously been at the forefront of emissions reduction, are confronted with threats to their previous low-carbon pledges. They are doing as much as they can to mitigate this new emissions growth engine.  

     He notes that buying certified gas has emerged as a necessary way to reduce emissions, although it is upstream emissions that are being reduced. Certified gas has been independently verified by a third-party verification company. Going through the verification process typically involves a company’s investing in projects such as switching out “high-bleed” pneumatic valves and controllers with “low-bleed” or “no-bleed” ones, replacing compressor seals, and expanding leak detection & repair (LDAR) programs. He notes that MiQ is the main certification standard in use.

“MiQ, which established the most widely used standards for gas-related MI and has already certified about 30% of U.S. gas production, gives gas with an MI of 0.5 a letter grade of “D” and gives better grades to gas with an MI of 0.2 (“C”), 0.1 (“B”) and 0.05 (“A”). Most of the gas certified by MiQ so far gets an “A.”

     I would have thought that more than 30% of U.S. natural gas would have been certified by now. We should double that. The graph shows that 79% of gas is grade A certified. That means that 23.7% of total U.S. natural gas production is grade A certified. It makes me wonder how much of that 23.7% is being pursued by buyers seeking to reduce their emissions. Is there more gas than buyers, or more buyers than gas? In other words, can demand meet supply? It seems likely that at the moment there is enough certified gas to go around, but with increased European imports, which often favor certified gas, and now data centers, I wonder how that will play out in the future.

     He notes that MiQ-certified gas can be bought bundled as physical gas or on the spot market at CG Hub or Xpansiv’s CBL Global Spot Exchange. He notes that Meta recently submitted a Request for Proposal (RFP) for certified gas:

“We aim to use our purchasing power to create demand for certified low-methane gas and support responsible methane management across the natural gas supply chain. To advance this goal, we are conducting a targeted RFP to identify interventions that specifically mitigate emissions from upstream natural gas production.”

     That request was for its hyperscale data center being built in New Albany, Ohio, which will source natural gas from the Marcellus and Utica region of Ohio, West Virginia, and Pennsylvania. That region has a much higher percentage of certified gas than the national average, so availability should not be an issue.

     The project began construction in 2020, experienced some delays, but has since been expanded and will require more power. They have contracted Williams Cos., a midstream operator branching out into power production, to build, own, and operate several behind-the-meter (BTM) generation projects for the data center. So far, the two collaborators have announced 1150 MW of these projects along with 376 MW of battery energy storage. The natural gas will be powered by turbines and reciprocating engines. Williams is also expanding its pipeline system in the area, putting in large-diameter trunk lines to ensure supply. He notes that Meta put in a requirement for Williams to source the gas locally.

“Meta and other companies that buy MiQ certificates tied to gas that might reasonably make its way to their sites are employing the “regional book & claim” method, under which the certified low-MI gas is required to flow into the same pipeline network that supplies the certificate buyer.”

     Carr notes that a future blog will cover how these companies are planning to add carbon capture and sequestration, renewables, and nuclear.

   

 

References:

 

Flawless – More on How Hyperscalers Mitigate the Impacts of Their Fast-Rising Use of Natural Gas. Housley Carr. RBN Energy. July 13, 2026. Flawless – More on How Hyperscalers Mitigate the Impacts of Their Fast-Rising Use of Natural Gas | RBN Energy