Zefiro Methane talks proxy contest results, 2026 plans

Executive Summary

• Zefiro Methane Corp. highlights its strategic focus on three key business segments following a proxy contest victory that retained the incumbent management team and added Hudheifa Moawalla to the board.
• The company reports strong operational momentum in its core environmental services, specifically noting the completion of a $5 million remediation project in Louisiana three weeks ahead of schedule and securing a licensed contractor status in that state.
• Zefiro is expanding its emissions monitoring and carbon offset origination capabilities, having secured a $1.3 million EPA-funded contract in West Virginia and successfully selling carbon offsets to Mercuria and EDF Trading in 2025.

Key Details

• Corporate Governance: Incumbent leadership retained control following a proxy contest victory at the annual and special shareholder meeting; Hudheifa Moawalla (London-based venture investor) appointed to the Board of Directors.
• Plug and Abandonment (P&A) Operations:
  • Subsidiary Plants & Goodwin Inc. (P&G) holds a solid win rate for government contracts, including over 30% of all funding received by the State of Ohio from the Infrastructure Investment and Jobs Act (IIJA) phase 1 formula grant.
  • Current or recent operations in Pennsylvania, New York, Ohio, West Virginia, Kentucky, Oklahoma, Virginia, and Louisiana (representing ~1/3 of U.S. states with unplugged wells).
  • Louisiana Project: A $5 million (U.S.) contract for remediation of nine wells for a private infrastructure developer in Lake Charles, La., completed in January 2026 three weeks ahead of schedule; P&G is now a licensed Louisiana contractor.
  • Other Recent Projects:
    • Surveying and plugging wells on two warehouse build sites for a major global e-commerce player.
    • $1.5 million (U.S.) project to plug nine marginal wells in Indiana County, Pennsylvania, for a coal-to-gas power plant conversion.
  • Crew and equipment fleet expected to be fully utilized through spring/summer/fall 2026.
• Emissions Monitoring:
  • Secured first-ever contract under the EPA’s Methane Emissions Reduction Program (MERP) in July 2025, administered by the West Virginia Department of Environmental Protection.
  • Contract value increased from initial $800,000 to total $1.3 million (U.S.).
  • More than 700 wells monitored to date under this contract.
  • Plans to commercialize emissions monitoring capabilities throughout 2026 with low capex/opex requirements.
• Carbon Markets:
  • Completed first-ever sale of carbon offsets under the American Carbon Registry’s methodology for orphan wells in 2025.
  • Offsets delivered to Mercuria and EDF Trading.
  • Chief Commercial Officer Tina Reine developing new methodologies for orphaned, abandoned, and marginal wells to resume carbon offset origination.

Notable Quotes

• Catherine Flax, CEO: "Our team is very excited to be entering a promising new era for Zefiro, in which we are prioritizing measurable outcomes and positive shareholder value instead of novel pursuits with no immediate path towards revenue... Now that we have properly straightened out Zefiro's board of directors, the company is better positioned than ever to take a focused, disciplined and results-oriented approach to its decision-making and planning for the future."
• Hudheifa Moawalla, Board Member: "As a global investor in emerging industries, the convergence of several factors makes Zefiro stand out as unique. Besides being a fully integrated provider with multiple profitable revenue streams, Zefiro is also a trusted partner of several U.S. government agencies, a preferred vendor for major private-sector customers and a first mover in the carbon markets."