New project in Permian Basin demonstrates benefits of Clean Fuel Standard

In New Mexico, a first-of-its-kind project by EOG Resources harnesses solar energy to provide supplemental power to run compressors in southern New Mexico normally powered entirely by natural gas. The project is also an example of one that could generate valuable credits under a Clean Fuel Standard (CFS) program, which is currently proposed before the Legislature (Senate Bill 11, Clean Fuel Standard Act).

Under a market-based CFS program, credits generated by such projects could be sold to transportation fuel producers who are unable to meet fuel intensity standards.

During daylight hours, 24,000 solar panels across 70 acres will provide up to 8 megawatts of power to run compressors with no combustion emissions.

Many companies, like EOG Resources, are looking to invest in return-focused, low emissions technology. If SB 11 becomes law, New Mexico would be the only southwest state with a Clean Fuel Standard, potentially incentivizing businesses seeking to innovate to relocate or expand in New Mexico over other states.