The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector

The document outlines how the Energy Infrastructure Reinvestment (EIR) program, part of the US Department of Energy's Title XVII authority, provides low-cost, long-tenor debt financing to help oil and gas companies repurpose ceased operations or reduce emissions from active infrastructure. It details specific transition opportunities across the upstream, midstream, and downstream value chains, such as lithium extraction from brine, enhanced geothermal systems, and the conversion of refineries to sustainable aviation fuel production. The brief emphasizes that the current high-interest rate environment makes this government financing particularly attractive, though the opportunity is time-constrained as loan authority currently expires in September 2026.

• The Energy Infrastructure Reinvestment (EIR) program provides significant financial capacity, with $5 billion allocated to cover the cost to the government to provide up to $250 billion in lending for eligible projects.
• EIR financing under the Title XVII program offers loan guarantees with a maximum tenor of 30 years, priced at 37.5 basis points above Treasuries of the corresponding tenor, and can cover up to 80 percent of eligible project costs.
• Upstream transition opportunities eligible for EIR include extracting lithium from oilfield brine using direct lithium extraction (DLE), developing enhanced geothermal systems (EGS), repurposing offshore infrastructure for wind power, and remediating abandoned onshore fields for renewable energy or storage.
• Downstream transition opportunities include converting gas stations into electric vehicle (EV) charging stations and repurposing oil refineries for the production of sustainable aviation fuel (SAF).
• The EIR program can finance activities to lower existing operational emissions, such as the electrification of upstream drilling, pipelines, and refinery processes, as well as the transition from gray to green hydrogen in refineries.
• EIR financing can support the monitoring and mitigation of methane emissions, helping companies comply with the final EPA methane rule and avoid the IRA's methane fee for qualifying petroleum facilities starting in 2024.
• The opportunity to apply for EIR financing is time-constrained, as the program's loan authority currently runs through September 2026, although loan disbursement may continue until 2031.

APA

RMI (2024). The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector. https://rmi.org/resources/the-energy-infrastructure-reinvestment-opportunity-accelerating-the-transition-of-the-oil-and-gas-sector/

Chicago

RMI. The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector. 2024. https://rmi.org/resources/the-energy-infrastructure-reinvestment-opportunity-accelerating-the-transition-of-the-oil-and-gas-sector/.

Wikipedia

{{cite report |author=RMI |title=The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector |date=30 September 2024 |url=https://rmi.org/resources/the-energy-infrastructure-reinvestment-opportunity-accelerating-the-transition-of-the-oil-and-gas-sector/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2024energy, author = {{RMI}}, title = {{The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector}}, institution = {RMI}, year = {2024}, month = sep, url = {https://rmi.org/resources/the-energy-infrastructure-reinvestment-opportunity-accelerating-the-transition-of-the-oil-and-gas-sector/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }