Reservoir Methane Capture Mechanism

The Reservoir Methane Capture Mechanism is a 'methane-as-a-service' financial structure designed to commercialize methane capture technologies at hydropower plants, specifically targeting the Brazilian market to reduce emissions and increase electricity production.

• The Reservoir Methane Capture Mechanism utilizes a 'methane-capture-as-a-service' model to allow hydropower operators to implement capture systems without taking on the risks of new technology. The system generates revenue through the sale of carbon credits and the use of captured methane to fuel biogas generators, which increases overall electricity production.
• Global methane emissions from water, including hydropower reservoirs, account for three billion of the fifty-one billion tons of greenhouse gases released annually. While capture technologies exist, a lack of financing has hindered scaling; currently, methane emissions reduction receives less than 2% of international climate finance, with a need for over USD 110 billion globally.
• In Brazil, where hydropower is the primary electricity source, the mechanism aims to mobilize USD 3 billion in capital at scale. This is projected to avoid 6.8 million tons of CO2e emissions annually, which the document equates to 3.7 million cattle heads or 1.5 million automobiles.
• The operational design centers on a special purpose vehicle (SPV) managed by Open Hydro, which handles the infrastructure and biogas generator. Bluemethane is responsible for designing the capture plant and measuring methane concentrations, while a local developer manages the biogas plant and the hydropower operator provides water usage rights.
• The technical process involves a plant at the turbines discharge that uses a closed-circuit hydro cyclone-like tank to capture methane, which is then fed into a biogas plant. The resulting energy is sold in the Brazilian market via the distributed energy framework, and carbon credit revenues are dependent on third-party verification of methane abatement.

APA

Climate Policy Initiative (n.d.). Reservoir Methane Capture Mechanism. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/RMCM-overview.pdf

Chicago

Climate Policy Initiative. Reservoir Methane Capture Mechanism. n.d. https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/RMCM-overview.pdf.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Reservoir Methane Capture Mechanism |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/RMCM-overview.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiativendreservoir, author = {{Climate Policy Initiative}}, title = {{Reservoir Methane Capture Mechanism}}, institution = {Climate Policy Initiative}, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2022/10/RMCM-overview.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }