Full Title: The Energy Infrastructure Reinvestment Opportunity: Accelerating the Transition of the Oil and Gas Sector
Author(s): Obianuju Ugwu-Oju, Uday Varadarajan, and TJ Conway
Publisher(s): Rocky Mountain Institute
Publication Date: September 30, 2024
Full Text: Download Resource
Description (excerpt):
The Energy Infrastructure Reinvestment (EIR) program of the Loan Program Office (LPO), coupled with Inflation Reduction Act (IRA) tax incentives, provides a unique and time-sensitive opportunity for the US oil and gas sector to accelerate its transition toward cleaner sources of energy and away from oil and gas.
Through the EIR, the LPO can provide financing for projects that retool, repower, repurpose or replace energy infrastructure that has ceased operations or projects that reduce operational emissions of existing energy infrastructure (for a detailed description see Appendix A), providing the opportunity not only for emissions reductions but also for reinvestment in energy communities. By lowering the cost of financing, the EIR creates more opportunities for oil and gas companies to reduce their operational emissions in the near term and more importantly, to transform their business models and advance the transition by pursuing eligible clean energy projects. This insight brief highlights examples of such opportunities.