Order Time, Supply Chain and Tank Inventories
What is the lead time for delivery and installation?
The typical timeframe for delivery and operation is six to eight weeks from receipt of the customer’s order.
Who manufactures Kathairos’ liquid nitrogen storage tanks and transport vehicles?
Kathairos’ storage tanks and Orca delivery systems are manufactured by Chart Industries (GTLS:NYSE), a publicly traded company with a 7.3B market cap.
Chart provides Kathairos with purchase financing of its cryogenic tanks and delivery vehicles, allowing us to rapidly scale across North America without capital restraints.
Kathairos and Chart have a two-way mutually exclusive partnership in place until 2027. This agreement was extended at the request of Chart in June 2023 (https://www.chartindustries.com/News-And-Events/Kathairos-Partnership-Expansion) which Kathairos was honoured to accept. Quite simply, we couldn’t ask for a higher quality manufactured product or a more aligned partner on every level, and it is thanks to our relationship with Chart that we are able to do what we do, while passing the same value, quality, reliability and economic viability on to our own customers.
Chart is fully supportive of Kathairos’ rapid growth and North America-wide adoption and continues to open new manufacturing avenues for us as needed.
Who are the other suppliers or partners in Kathairos supply chain?
The simplicity of the Kathairos system is exemplified by our small but mighty supply chain, with only three primary inputs. That is, our Chart-manufactured cryogenic tanks and delivery vehicles, our Anova-manufactured telemetry system, and the liquid nitrogen we source from a North America-wide network of air separation units. That’s it.
We have carefully selected our partners based on their quality, commitment to Kathairos’ needs, and ability to scale and meet the demand this moment and ambitious regulatory timelines require. Along with our supplier partners, we share a bold vision of bringing a truly viable decarbonization solution to the oil and gas industry, while eliminating methane venting from well site pneumatics for good.
Use Cases and Success Stories
Can I use nitrogen elsewhere on our well site operations?
Yes. Anywhere there's methane being used as a high-pressure fuel source, the Kathairos solution provides the ideal off-grid power drive replacement system.
Do you have any specific customer examples/success stories of how your methane elimination system reduced/eliminated methane?
Kathairos' liquid nitrogen methane elimination solution has demonstrated remarkable success in reducing methane emissions, as evidenced by a recent customer in the Piceance Basin in Western Colorado. We facilitated the installation of over 140 tanks in nine weeks with this producer partner, averaging five tanks tied in per day.
This substantial deployment project addressed methane venting from more than 2,500 wells and 9,000 pneumatic devices, immediately bringing pneumatic emissions to zero.
Further, the US operator was highly exposed to the incoming Waste Emissions Charge (WEC) from the US EPA as of January 1, 2024, which would have seen them paying more than $10MM in fees in 2024 alone. Through our rapid 9-week deployment project with them from October through December 2023, they were able to avoid this fee altogether.
Overall, the scalability, affordability and efficiency of the Kathairos system continues to play a crucial role in allowing producers to meet stringent incoming emission reduction targets within a short timeframe.
As operators increasingly recognize the urgency of addressing methane emissions, Kathairos remains at the forefront, delivering sustainable solutions that not only meet regulatory requirements but also contribute to environmental stewardship and operational excellence.
Regulatory Compliance
How can oil producers meet upcoming methane emission regulations?
Regulations in Canada (e.g., ECCC’s methane regulations) and the U.S. (e.g., EPA Subpart W, Methane Rule, and OOOOb/OOOOc) require substantial reductions in methane emissions, particularly from pneumatic controllers and pumps. Kathairos replaces methane-powered pneumatics with a non-emitting nitrogen solution, enabling producers to fully eliminate emissions from these sources, meeting or exceeding regulatory thresholds. Kathairos can support oil and gas producers to achieve OGMP 2.0 reporting standards, which require direct measurements and high levels of accuracy. By removing venting emissions at the source, producers can more confidently and transparently report reductions using Kathairos’ digital platform, Atlas.
Is Kathairos Solutions approved for regulatory methane abatement in Canada?
Yes, Kathairos Solutions is working to support regulatory methane abatement in Canada. Their system eliminates methane emissions from pneumatic devices and is being used by major North American oil and gas producers to comply with methane reduction targets.
How can companies meet the 2030 zero-vent mandate in North America?
Kathairos provides a solution for the 2030 zero-vent mandate in North America by eliminating methane venting from pneumatic devices using liquid nitrogen. This technology replaces methane with nitrogen to operate well site pneumatics, effectively eliminating methane emissions from this source.