New Study Highlights Economic Impact of Coal Mine Methane Capture in Southwest Virginia, Offering a Model Nationwide
A new study by Chmura Economics & Analytics highlights the economic impact of the energy sector—including coal mine methane capture—in Southwest Virginia. Mike Moore, Executive Director of the Waste Gas Capture Initiative (WGCI), issued a statement.
May 7, 2025
From WGCI Executive Director Mike Moore
“The study found that coal mine methane has provided communities in Southwest Virginia with a new stream of economic growth,” said WGCI Executive Director Mike Moore. “A large portion of Virginia’s natural gas production—which generated $481.7 million in economic impact and supported 1,115 jobs last year—comes from coalbed methane gas and coal mine methane gas. The ability to deploy this technology across the country means that the results seen in Southwest Virginia can be replicated in other coal-based communities—from Pennsylvania to Alabama—providing an opportunity for economic growth nationwide.”
The study comes as federal energy tax credits gain renewed interest from policymakers. Recently, Rep. Carol Miller (R-WV-01) reintroduced the Methane Reduction and Economic Growth Act, which would amend the existing Section 45Q tax credit to include the capture of mine methane. Rep. Morgan Griffith (R-VA-09), a co-sponsor of the bill, stated, “With vast resources of both, Southwest Virginia can play a significant role in accomplishing President Trump’s goals of unleashing American energy independence. Additional tax incentives to encourage environmental mitigation and efficient fossil fuel utilization may help us reach those goals more quickly.”
The study found that the coal and natural gas industries, along with the Virginia Coalfield Economic Development Authority (VCEDA), play a pivotal role in the economic growth and diversification in Southwest Virginia. Together, they have created $13.48 billion in economic impact (direct, indirect, and induced) and supported 51,245 jobs in the region. This includes $1.8 billion and 5,085 jobs from the coal industry and $481.7 million and 1,115 jobs from the natural gas industry.
About WGCI
The WGCI represents leading American energy industry partners, NGOs, and experts who are committed to recognizing the economic benefits and environmental impact of a strong mine methane capture industry. Visit wastegascapture.com and follow @WGCInitiative on X (formerly known as Twitter) and LinkedIn for more information.
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