Zefiro issues 92,956 metric tonnes of CO2e carbon credits under ACR’s orphan well methodology
Marks the first-ever certified offsets from plugging abandoned oil and gas wells in the U.S.
Mercuria Energy America receives first tranche in pre-sale deal, setting new precedent for voluntary carbon markets
Zefiro Methane has completed a milestone transaction in the voluntary carbon markets by delivering its first batch of carbon credits generated from orphan well remediation. The credits, certified under the American Carbon Registry’s (ACR) new orphan well methodology, reflect confirmed emissions reductions of 92,956 metric tonnes of CO2 equivalent from a project in Custer County, Oklahoma.
The first tranche of credits has been transferred to Mercuria Energy America, fulfilling part of a pre-sale agreement. This deal establishes a new funding pathway for plugging abandoned oil and gas wells, historically an underfunded environmental liability.
Catherine Flax, Zefiro’s CEO, called the development a turning point: “The successful issuance and delivery of Zefiro’s very first carbon credits is a landmark development not just for us as a company, but also for the voluntary carbon markets as a category in which new standards are being set. With this Methodology that allows carbon offsets to be generated directly from the remediation of orphaned oil/gas wells, there is now a clear and straightforward blueprint in which the voluntary carbon markets can be leveraged as a funding source for leaking wells to be plugged without needing to rely on taxpayer resources.”
The methodology, published in 2023, enables carbon offsets tied directly to plugging wells that emit methane and other greenhouse gases. Under the leadership of Chief Commercial Officer Tina Reine, a former founding member of J.P. Morgan’s carbon trading desk, Zefiro completed methane emission measurements, remediation work, and third-party validation to originate some of the first credits under this standard.
“These days, institutional end-users in the carbon markets are looking for credits that are generated through projects that make a quantifiable and common-sense impact, with transparent and verifiable emissions reductions,” said Reine. “One of the most remarkable things about this pair of developments for Zefiro is that Mercuria agreed to purchase the ACR959 carbon credits before the Methodology was even finalized, which virtually never happens in the voluntary carbon markets.”
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Mercuria, one of the world’s largest independent energy and commodities groups, sees the credits as a practical solution for customers pursuing net-zero goals. Adam Raphaely, Managing Director at Mercuria Group America, noted: “For too long, investors have not had routine access to reduction activities that display proven pathways to reducing harmful oil and gas emissions. Our work with Zefiro represents not only Mercuria’s commitment to fostering innovative projects and ideas that have the power to reshape the industry but also our alignment with the core principles of many of our customers.”
The credits will be delivered to Mercuria in four equal tranches, with the first already completed. With this milestone, Zefiro adds a third revenue stream alongside its core plugging and abandonment operations and methane monitoring services, which have already generated $24.4 million in revenue for the first three quarters of 2025.
Reine added: “Now that Zefiro has successfully delivered its very first carbon credits to a purchaser, we are now positioned to more rapidly generate carbon credits from current and future environmental remediation projects in the United States. There has long been a deficit of supply in terms of American-originated carbon offsets that meet the requirements of institutional purchasers such as Mercuria and their end-user clients.”
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