The Energy Infrastructure Reinvestment Program: What You Should Know
As the energy sector evolves, oil and gas companies are adapting to use more renewable energy sources and investing in a sustainable future. Fossil fuels will continue to play a role in global energy, but businesses must plan for what’s coming next. This requires finding new ways to reduce emissions and carbon intensity, meaning the energy infrastructure, the foundation of energy production, needs to be innovative.
That’s why the Energy Infrastructure Reinvestment (EIR) program is a powerful initiative that is designed to modernize and upgrade aging energy infrastructure.
The EIR program provides a significant opportunity for midstream energy companies. They can contribute to building a sustainable and environmentally friendly energy future. This benefits everyone.
The Purpose of the Energy Infrastructure Reinvestment Program
Established by the Inflation Reduction Act of 2022, the EIR program aims to reinvent energy infrastructure. This initiative includes substantial funding that supports upkeep projects for existing energy facilities or infrastructure that has stopped operations.
Those projects fall into the following categories:
- Repowering
- Retooling
- Repurposing
- Replacing
Reduce Greenhouse Gas Emissions and Air Pollution
The EIR program favors projects that contribute to lowering emissions by funding upgrades to pipelines to reduce emissions such as methane leaks. In addition, the program targets projects that support the development of carbon capture technology.
Having a solid ESG strategy is a huge priority for stakeholders. Therefore, leveraging the EIR program demonstrates a company’s commitment to environmental protection.
Enhance the Efficiency and Reliability of the Energy Grid
Updated, modern electricity grids are crucial for keeping up with increasing consumer demand.
To help address this challenge, the Energy Infrastructure Reinvestment Program aims to improve energy grid performance in several ways, including its:
- Reliability
- Efficiency
- Sustainability
This initiative might require funding projects integrating renewable energy sources like wind and solar power. It could also include upgrading aging transmission lines and transformers.
Facilitate the Integration of Clean Energy Sources Such as Wind and Solar Power
The current energy infrastructure does not support cleaner energy sources. The EIR program can help build new transmission lines to connect renewable energy sites to cities.
The EIR program has two main goals. The first goal is to improve energy security. The second goal is to speed up the shift to clean energy by investing in advancements.
At the same time, many energy assets serve as the economic backbone of many communities. By reinvigorating facilities, we create jobs and revitalize communities.
Eligible Infrastructure Categories for Midstream Companies
Many industries will benefit from the Energy Infrastructure Reinvestment program. However, midstream energy companies are perfectly positioned to truly make a difference because they operate pipelines and storage sites for many energy products, such as:
- Natural gas
- Oil
- Fuels
The EIR program offers the perfect opportunity for midstream companies to secure funding for various infrastructure improvement projects. These may include:
Pipeline Modernization
Upgrading pipelines with new technology and materials can improve safety, efficiency, and capacity. This may involve replacing old pipelines or implementing the latest technology, such as leak detection systems. It could also mean expanding pipeline capacity to accommodate future clean energy needs and demands.
Carbon Capture, Utilization, and Storage (CCUS)
Investing in CCUS technology can reduce the environmental impact of midstream operations. In addition, these technologies capture carbon dioxide emissions and either store them or reuse them for other purposes.
Hydrogen Infrastructure Development
Hydrogen is emerging as a potential clean energy carrier. That’s why midstream companies can use EIR funding to develop hydrogen transportation and storage infrastructure. This could involve building pipelines specifically for hydrogen or repurposing existing pipelines to accommodate hydrogen transportation.
Energy Efficiency Improvements
All companies strive to increase efficiency. The EIR program can support projects that enhance the energy efficiency of midstream operations. This may involve implementing strategies to reduce energy consumption during pipeline transportation and storage processes.
Why Midstream Companies Should Partner with Veriforce
The EIR program presents a unique opportunity for midstream energy companies to secure funding for critical infrastructure projects. However, navigating the application process and ensuring compliance with program requirements can be complex.
We’re here to help. Working with Veriforce can help midstream companies navigate the EIR program successfully with expertise and support.
Our team knows a lot about the EIR program and the challenges midstream companies face. Furthermore, we provide support and guidance on incorporating environmental and sustainability best practices into your ESG strategy.
How to Apply for EIR Program Funding
Midstream energy companies can get funding through the EIR program by visiting the DOE LPO website. https://www.energy.gov/lpo/request-pre-application-consultation
To apply, you need to submit a proposal with details that explain your project and how it satisfied EIR program goals. Additionally, it should outline the benefits your project could bring.
By partnering with Veriforce and leveraging the EIR program, midstream energy companies can play a key role in modernizing energy infrastructure and accelerating the clean energy transition. Let’s work together to build a more secure, sustainable, and resilient energy future.
Contact us today to learn more.
