Campbell County Commissioners learn about Cowboy Clean Fuels' plan to create renewable natural gas with old CBM wells
GILLETTE — Last week, Campbell County Commissioners got to learn about an emerging company that is using old infrastructure to create something new.
Cowboy Clean Fuels, a clean energy and climate technology company, uses old coal-bed methane wells to inject molasses into coal seams hundreds of feet under the ground. The coal seams in the Powder River Basin act as natural geo-bioreactors, converting the molasses into renewable natural gas made primarily of carbon dioxide and methane.
Representatives from the company presented to the Campbell County Commissioners last Thursday and took them on a tour of the Triangle Unit, 30 miles southwest of Gillette, where Cowboy Clean Fuels has removed 2,500 tons of carbon dioxide so far.
This renewable natural gas is produced when organic matter is broken down by microbes. The carbon dioxide is permanently captured and stored in the coal seams, and the renewable natural gas is brought to the surface and transported using existing pipelines.
This process captures the methane that would otherwise be released into the atmosphere. And with the trapped carbon dioxide, Cowboy Clean Fuels can sell carbon credits to companies that are looking to off-set their emissions.
Michael Urynowicz, a professor at the University of Wyoming, has developed the technology over the last 16 years. Cowboy Clean Fuels licenses the technology, which is owned by UW.
Cowboy Clean Fuels recently announced an offtake agreement with Mercuria, an independent energy and commodity trading group. This is the company’s first commercial agreement for the sale of renewable natural gas produced in Campbell County.
Under the agreement, Mercuria will purchase the Environmental Attributes, or EAs, associated with Cowboy’s carbon-negative RNG and distribute them through its global network of energy transition customers. The agreement covers an initial term of 10 years and represents the offtake of 5 million MMBTU equivalent EAs.
Preston Anderson, CFO and COO of Cowboy Clean Fuels, told the commissioners Thursday that the project in Campbell County should last for a while.
“Our project should last for a hundred years or more before we run out of space,” Anderson said. “Once we’re fully operational, by 2029 or 2030, expect to produce 1.3 billion cubic feet of natural gas.”
Cowboy Clean Fuels has invested more than $2 million in Campbell County just in the past few months, Anderson said.
Commissioner Scott Clem asked if the carbon credits will cause people’s electric bills to go up.
Ryan Waddington, CEO and chair of Cowboy Clean Fuels, said this is not a widespread thing in the United States. But in countries like Canada, where there is a mandate for utilities to “purchase some amount of clean renewable energy,” cost increases get passed down to the user.
“I would not send an alarm off right now, relative to utilities,” Waddington said.
Commissioner Bob Jordan asked if Cowboy Clean Fuels is looking at any other locations in Campbell County. The company said it is actively seeking out other sites, but none are far along enough yet for them to talk about publicly.
Clem asked how long the process takes.
“The first time you do an injection, microbes aren’t used to that food; it takes some time for them to adjust,” Waddington said.
“Our experience has been four to six months. Once they’re used to it, they produce that gas much more quickly,” Anderson said.
Clem then asked if this process affects the quality of the coal. Urynowicz said this was one of Cowboy Clean Fuels’ first studies, because the Department of Environmental Quality had the same question. Based on testing, “we didn’t see any effect on the coal at all,” Urynowicz said.
And Anderson said the company has run many rigorous tests to ensure that the project doesn’t affect any nearby wells or water systems. It has a Class V permit, which requires it to adhere to very strict regulations and thresholds.
This story was published on Sept. 16, 2025.