Methane producer Zefiro introduces carbon credits from abandoned oil wells for the first time

In a groundbreaking move, Mercuria, one of the world's largest independent energy and commodities groups, has agreed to purchase carbon credits from Zefiro. These credits are a response to the growing demand from institutional end-users in the carbon markets for credits with quantifiable and common-sense impact, with transparent and verifiable emissions reductions.

Zefiro Methane has issued 92,956 metric tonnes of CO2e carbon credits under the American Carbon Registry's (ACR) new orphan well methodology. This marks the first-ever certified offsets from plugging abandoned oil and gas wells in the U.S.

The deal establishes a new funding pathway for plugging abandoned oil and gas wells, historically an underfunded environmental liability. The carbon credits will be delivered to Mercuria in four equal tranches, with the first already completed.

Mercuria Energy America, the entrepreneur who first acquired carbon credits generated through the Orphan-Well methodology of the American Carbon Registry by reducing leakage at abandoned oil and gas wells in Oklahoma, received the first tranche of credits from Zefiro Methane.

Adam Raphaely, Managing Director at Mercuria Group America, sees the credits as a practical solution for customers pursuing net-zero goals. He notes that the work with Zefiro represents Mercuria's commitment to fostering innovative projects and ideas that have the power to reshape the industry.

Tina Reine, Zefir's Chief Commercial Officer, completed methane emission measurements, remediation work, and third-party validation to originate the first credits under this standard. She emphasizes the deficit of supply in American-originated carbon offsets that meet the requirements of institutional purchasers like Mercuria and their end-user clients.

The success of Zefiro's carbon credits has added a third revenue stream alongside its core plugging and abandonment operations and methane monitoring services. The first tranche of credits has been transferred to Mercuria Energy America as part of a pre-sale deal.

Catherine Flax, Zefiro's CEO, has called the development a turning point for the voluntary carbon markets. Raphaely agrees, stating that the work with Zefiro represents a significant step forward in Mercuria's mission to support projects that make a tangible difference in addressing climate change.

These operations have already generated $24.4 million in revenue for the first three quarters of 2025, positioning Zefiro to generate more rapidly from current and future environmental remediation projects in the United States. The company's successful delivery of the first carbon credits positions it well for continued growth and impact in the voluntary carbon markets.

Methane producer Zefiro introduces carbon credits from abandoned oil wells for the first time