Coldstream Energy Launches the MaCH4™ NGL Recovery Solution with Archrock as Strategic Distribution Partner
Coldstream Energy, LLC ("Coldstream"), an innovator in natural gas processing technology for maximizing profits and reducing emissions at compressor stations, today announced the launch of its MaCH4 NGL Recovery Solution ("MaCH4").
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MaCH4 is an energy- and cost-efficient gas separation solution developed and patented by Coldstream. The solution is highly effective at recovering NGLs, reducing VOC emissions from compressor stations, and avoiding engine performance derating for maximizing station throughput and fee-based revenue.
"The MaCH4 innovation positions Coldstream as a technology company focused on helping upstream and midstream operators maximize operational efficiency and comply with increasingly stringent emissions regulations in a profitable manner," said Mathias Schlecht, Chief Executive Officer of Coldstream. "The MaCH4 is a novel application of proven Pressure Swing Adsorption technology, which brings NGL recovery rates comparable to cryogenic plants to compressor station facilities to produce lean, pipeline quality fuel gas, while capturing the valuable NGL's for downstream processing and monetization. The MaCH4 is like having a virtual pipeline of lean fuel gas on site without a physical residue line."
In connection with this announcement, Coldstream has entered into a strategic partnership and distribution agreement with Archrock, Inc. ("Archrock") (NYSE:AROC) to accelerate market expansion and meet rising demand for the MaCH4 solution. Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment.
"We are pleased to serve as the strategic partner for Coldstream's MaCH4, and excited to bring this innovative solution to compressor stations across the country," said Brad Childers, President and Chief Executive Officer of Archrock. "There is already strong demand for the MaCH4 system, and we look forward to capitalizing on the significant market opportunity as we unlock value for Archrock customers and shareholders alike."
MaCH4 NGL Recovery Solution – Pipeline Quality Fuel Gas Without the Residue Line
The MaCH4 features a compact design with no rotating components or chemicals required, which minimizes long-term operating costs. It is a simple and economically compelling solution for maximizing NGL value, minimizing VOC emissions, and maximizing fee-based revenue for producers and gatherers, while also maximizing the efficiency and runtime of engines and respective compressors.
A single MaCH4 unit can deliver sufficient lean fuel gas to support up to 8,250 horsepower and deliver significant benefits, including(1):
- Increased NGL Revenues. Generate an estimated $1.1 million in incremental NGL revenue through NGL recovery.
- Lower Emissions. Avoid 35 tons of VOC emissions annually, enabling facility expansion while potentially maintaining emissions levels below Major Source thresholds to avoid costly and time-consuming Title V permitting requirements.
- Higher Engine Performance. Remove and sell heavy hydrocarbons to deliver a lean fuel gas that avoids engine derating by up to 9%, increasing compressor throughput and operational efficiency.
(1)Note that these results are based on 1,310 BTU HHV field gas; 1,080 BTU HHV fuel gas; lean burn engines; and 5-year average EIA NGL pricing. Engine fuel gas flow rate and associated gathering station HP will vary based on field gas composition and BTU HHV.
More information on the MaCH4 NGL recovery solution is available on the company's website at ColdstreamEnergy.com.
MaCH4 Solution Demonstrates Field-Proven Performance at Iron Horse Midstream
The MaCH4 has undergone a rigorous pilot project with Iron Horse Midstream, fueling a compressor station located in Grady County, OK, with lean gas since December 2023. The MaCH4 has posted more than 99 percent mechanical availability since its commission, been remotely monitored and operated since May 2024, and will be converted into a permanent installation in the first quarter of 2025.
Based on a field gas BTU value of approximately 1,305 BTU/scf at the pilot site, the total annual NGL value recovered would be greater than $1.2MM for a 7,500 HP compressor station.
"At Iron Horse, we work tirelessly at improving operational efficiencies and overall system performance," said T. D. Baskin, Chief Operating Officer at Iron Horse Midstream. "The MaCH4 system is effective at recovering heavy hydrocarbons, resulting in a steady supply of lean fuel gas to compression. The benefits are reduced emissions, greater engine efficiencies, and increased system throughput. With the MaCH4 solution, we can further reduce our VOC emissions and maintain levels below stringent operating permit thresholds."
About Coldstream Energy
Coldstream Energy, based in Houston, Texas, is a leader in innovative natural gas conditioning and separation technology to maximize profits and minimize emissions for upstream and midstream operators.
At Coldstream Energy, we are passionate about our commitment to improving air quality and reducing waste of the Earth's valuable resources. A sustainable oil and gas industry is the foundation of the modern global economy, providing affordable and reliable energy. At this pivotal time, our technology provides a tremendous opportunity to capture valuable resources that otherwise would be wasted by combusting NGLs in compressor engines or flaring natural gas. Not only is converting "field gas" into valuable products good for the environment, but it is also just good business.
Our solutions are engineered to recover Natural Gas Liquids (NGLs) efficiently and effectively for maximizing the value of natural gas production streams. We use proven technologies for recovering heavy hydrocarbons (C3+) from produced gas and tank vapors, generating incremental revenue, boosting operational efficiency, and improving environmental performance.
Our flagship MaCH4 NGL Recovery System (NRS) is a breakthrough application of proven Pressure Swing Adsorption (PSA) technology for use in the oil and gas industry and is the simplest and fastest way to achieve cryogenic-quality NGL recovery and lean compressor engine fuel gas.
About Iron Horse Midstream
Based in Dallas, TX, Iron Horse Midstream is focused on natural gas and crude oil midstream services. The company operates a 425 MMcf/d cyrogenic natural gas processing complex in the heart of the SCOOP/STACK/Merge in the Anadarko Basin. Iron Horse also operates approximately 350 miles of high and low-pressure natural gas gathering pipelines and multiple compressor stations. For more information on the company, please visit www.ironhorsemidstream.com.
About Archrock, Inc.
Archrock is an energy infrastructure company with a primary focus on midstream natural gas compression and a commitment to helping its customers produce, compress and transport natural gas in a safe and environmentally responsible way. Headquartered in Houston, Texas, Archrock is a premier provider of natural gas compression services to customers in the energy industry throughout the U.S. and a leading supplier of aftermarket services to customers that own compression equipment. For more information on how the Company embodies its purpose, WE POWER A CLEANER AMERICA™, visit www.archrock.com.
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Coldstream Energy, LLC
Mathias Schlecht
President and CEO
[email protected]
Iron Horse Midstream
Meggan Morrison
Redbird Communications Group
[email protected]
Archrock, Inc.
Megan Repine
VP Investor Relations
[email protected]