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[ECO]Hyliion Lands $6 Million Grant to Reduce Oil Industry Pollution


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Hyliion awarded a $6 million federal grant to advance methane emission reductions in the oil and gas industry.

Hyliion Holdings Corp., a developer of sustainable energy technology, just scored a big win—a $6 million grant from the U.S. Department of Energy’s (DOE)

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This funding, part of an $8.4 million collaborative effort between federal and non-federal sources, will support the deployment of up to 2 megawatts of

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generators in partnership with oil and gas operators.

This grant is part of the $850 million Methane Emissions Reduction Program managed by the DOE and the U.S. Environmental Protection Agency. The program’s objective is to support projects that enhance the monitoring, measurement, and mitigation of methane emissions in the oil and gas sector. By deploying KARNO generators, Hyliion aims to contribute to this goal while fostering economic growth and job creation in local communities.

Methane emissions from oil wells represent a significant challenge for the oil and gas industry—and for the planet. These emissions contribute approximately 30% to current global warming, making the sector one of the largest contributors to climate change. Despite advances in regulation and technology, the persistent release of methane and the wasteful flaring of valuable natural gas remain critical issues requiring urgent attention.

The oil and gas industry faces mounting regulatory and societal pressure to address these emissions. In addition to the environmental damage, flaring and venting contribute to inefficiencies that undermine the industry’s profitability and sustainability. The question is clear: how can operators reduce methane emissions and turn waste into opportunity?

Hyliion Holdings Corp. offers a compelling solution to this pressing problem with its KARNO

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generator. The project’s focus is demonstrating the KARNO generator’s capability to transform well-head gas into near-zero emissions electricity. 

The technology, which successfully processed gas from the Permian Basin in 2023, highlights its fuel-agnostic design and adaptability to utilize unprocessed gas. This approach aims to

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and flaring in oil fields while delivering scalable, efficient power solutions.

“The KARNO generator is redefining sustainable energy production by converting waste gas, typically flared, into valuable power,” said Thomas Healy, Hyliion’s founder and CEO. “This funding enables us to showcase the transformative potential of our technology in addressing methane emissions in the oil and gas industry.”

In addition to its immediate applications in reducing flaring and emissions, the KARNO generator has the potential to serve other industries and contexts. For example, its fuel flexibility and scalability make it suitable for integration with

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, such as providing backup power for solar or wind farms. 

Furthermore, its robust design could prove invaluable in disaster response scenarios, where reliable and portable power generation is critical. Exploring these future applications could expand the generator’s impact across various sectors.

The funding allocation to Hyliion is contingent upon completing final negotiations and executing a definitive agreement with the DOE.

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