Coal Mine Methane Capture & Utilization Grant Program

The Coal Mine Methane Capture & Utilization Program is a competitive subaward initiative led by Virginia Energy in partnership with the Virginia Department of Environmental Quality (DEQ). Supported by $79.5 million in funding from the U.S. Environmental Protection Agency (EPA) through the Climate Pollution Reduction Grant (CPRG) program, the grant seeks to significantly reduce greenhouse gas emissions—specifically methane—from active and abandoned coal mines in Southwest Virginia. The program aligns with Virginia’s Priority Climate Action Plan and underscores the state’s policy goals to reduce up to 1 million metric tons of CO2 equivalent annually through commercialized or commercial-ready methane capture and reuse technologies. The program is designed to support implementation-ready projects that capture or destroy fugitive coal mine methane (CMM). Projects that prioritize the beneficial reuse of methane—such as pipeline injection, electricity generation, fuel cell conversion, or manufacturing feedstock—are especially favored over simple flaring or destruction. The intent is not to incentivize new coal extraction but to work with existing mines or legacy mine lands. The program encourages projects that are environmentally sound, economically beneficial, and technically feasible, with a goal of transforming CMM into a valuable energy source while fostering job creation and regional development in historically coal-dependent areas. Eligible subawardees must be entities actively engaged in methane reduction. These entities are encouraged to form joint applications with active or abandoned mine site owners/operators, but the methane reduction implementers must serve as the lead applicants. Applications should detail a clear plan for emissions reduction estimates, methane reuse, economic and community benefits, long-term self-sustainability, and adherence to legal and regulatory frameworks such as the Virginia Gas and Oil Act and associated administrative codes. The submission process requires applicants to email completed application materials—including the grant form, budget spreadsheet, and accompanying narrative documents—to [email protected]. The full application package must include documentation of previous methane reduction project experience, staff qualifications, technical design, emission reduction calculations, and compliance/reporting systems. Submissions that demonstrate strong agreements with stakeholders (e.g., landowners, gas operators) and emphasize pilot innovations or scalable models will be prioritized. Applicants are also expected to describe strategies for quality assurance (QAPP), community outreach, EPA emissions reporting compliance, and risk mitigation. Evaluation criteria assign the highest weight (40%) to methane reduction and reuse planning, followed by experience, agreements, technical approach, and economic impact. Virginia Energy requires all subawardees to comply with federal and state procurement, auditing, and labor standards including Davis-Bacon and BABA requirements where applicable. Reporting responsibilities include semi-annual updates, final performance reports, and compliance with EPA’s 2 CFR 200 standards. Program income, if generated, must be tracked and reinvested into methane reduction activities per federal rules. The program closes to new applications at 5:00 PM ET on April 10, 2026, and all activities must be completed by September 30, 2029. All applications must be submitted electronically. Applicants must ensure all necessary agreements, technical documents, and reporting structures are in place and demonstrate the capacity to meet both emissions goals and community impact standards. This initiative represents a unique opportunity to convert a potent climate pollutant into an economic and environmental asset.

Prioritize beneficial methane reuse over destruction; highlight sustainability beyond 2029; agreements with mine owners/operators improve competitiveness