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Powering Virginia: The Economic Benefits of Coal Mine Methane Captjure

 


By Leon Boyd


November 1, 2024 - Virginia, like many states in Appalachia, faces economic challenges that demand increased investment. The decline of coal mining has left many communities like mine struggling to find new sources of employment and economic growth. Amidst these challenges, coal mine methane (CMM) has emerged as an untapped resource that is revitalizing our economy and supporting our transition to a more sustainable energy future.


Noah Horn Well Drilling was founded in the 1950s as a family business serving Southwest Virginia. Over the years, we drilled everything from phone lines to wells, and were always committed to supporting our community. Our company has since shifted its focus towards drilling methane gas wells and constructing pipelines to distribute the gas to markets in Virginia and West Virginia. However, as the gas markets slowed down, companies like ours have struggled to hold on to our dedicated and skilled employees. With coal mines shutting down in Virginia and Appalachia, I've seen firsthand the urgent need for job creation and economic expansion in our region.


As someone who works closely with the local workforce, I have seen how investments in CMM projects can transform communities. In Virginia, these projects are providing direct employment opportunities in the construction, operation, and maintenance of methane capture infrastructure while simultaneously creating indirect employment opportunities in sectors such as manufacturing.

 

But we're just getting started. We have untapped opportunities in Virginia and throughout Appalachia to scale CMM capture projects, creating more jobs, supporting families, and stimulating local economies. One analysis identified that potential CMM capture projects in Virginia could bring as many as 238 new jobs to the state in as little as five years. These positive changes in our community and workforce due to CMM projects are tangible and significant. Investing in CMM not only addresses unemployment but also brings hope and renewed vitality to our towns and cities, building a model for other communities like ours across Appalachia.


The contribution of CMM projects to Virginia's economy is equally noteworthy. For instance, capturing and utilizing CMM can extend beyond job creation to significantly boost local and state tax revenues while driving business growth. Local businesses, from suppliers to service providers, benefit from the economic activity generated by CMM projects. Over 15 years, investing in CMM projects could contribute as much as $176.6 million to Virginia's GDP. At the same time, new investment in infrastructure and operating expenses towards Virginia's CMM projects is projected to reach almost $400 million. These projects have the potential to bring significant resources to the parts of Virginia that need them most.

 

CMM capture is not just about the local economic benefits; it enhances American energy independence and sustainability by reducing greenhouse gas emissions and improving air quality. Utilizing CMM as an energy source boosts grid reliability and supports our transition to a sustainable energy future.


For CMM projects to be viable, strong policy support and tax incentives are crucial. As someone who runs a business, I understand the importance of these incentives in making projects financially feasible. Proactive efforts, such as the bipartisan Methane Reduction and Economic Growth Act, recently introduced by Senators Mark Warner of Virginia and Shelley Moore Capito of West Virginia, as well as Congresswomen Carol Miller of West Virginia and Terri Sewell of Alabama in the House, provide a model for supportive policy that can drive investment and growth in CMM projects. Policymakers must champion these projects by ensuring robust tax incentives that make CMM capture projects viable while driving economic growth and job creation.


CMM capture can serve as a blueprint for sustainable economic development in Appalachia and across the country, creating a balanced approach to energy and economic development. The urgency of supporting CMM projects like this one through policy and tax incentives cannot be overstated. Policymakers must prioritize CMM capture in their agendas to enable a prosperous and sustainable future for the people of Virginia and Appalachia.


As we look ahead, I'm encouraged by the support I'm beginning to see for coal mine methane capture as a common-sense solution that addresses both economic and environmental challenges. By continuing this support, we can unlock the full potential of this valuable resource, driving economic growth and creating jobs in the areas that need them most.


Leon Boyd is Vice President at Noah Horn Well Drilling based in Vansant, Virginia.