Client profile

Milestone Environmental Services is an energy waste sequestration provider based in Texas. They specialize in using slurry injection technology to manage drilling waste from the oil and gas industry.

Challenges

The oil and gas industry faces significant environmental challenges related to the disposal of drilling waste. Traditional methods like landfarming and reserve pits pose risks of soil and water contamination, as well as negative impacts on local wildlife and human health. These methods also fail to meet evolving regulatory standards and investor expectations for sustainable practices.

Action and approach taken

Milestone Environmental Services collaborated with CohnReznick and the NYU Stern Center for Sustainable Business to evaluate the financial and environmental benefits of their slurry injection technology. They applied the Return on Sustainability Investment (ROSI™) methodology to quantify the advantages of this alternative waste disposal method.

CohnReznick’s role and insights:

• Financial analysis: CohnReznick conducted a detailed financial analysis using the ROSI™ methodology to identify and quantify the financial benefits of Milestone’s slurry injection technology.
• Sustainability-linked loans: CohnReznick helped Milestone secure a sustainability-linked loan with a lower interest rate by meeting specific annual sustainability targets. This loan allowed Milestone to expand their slurry injection business at a reduced cost.
• Market share growth: CohnReznick analyzed Milestone’s potential for market share growth by evaluating the total addressable market within Texas and projecting growth rates based on Milestone’s operational data and industry trends.

Clear, demonstrated results

1. Financial benefits for Milestone:

•  Reduced interest rate on loans: Milestone secured a sustainability-linked loan with a lower interest rate by meeting specific annual sustainability targets.
• Market share growth: Increased penetration of the on-site disposal market for slurry injection within Texas.

2. Financial benefits for landowners:

• Increased income: Landowners leasing land to Milestone for slurry injection received higher returns compared to cotton farming.
• Retention of land value: Slurry injection required less surface land, preserving more usable land compared to reserve pits and landfarming.

3. Financial benefits for Milestone’s customers:

• Avoided cost of carbon: Customers avoided CO2 emissions and potential carbon-related fees by using Milestone’s slurry injection services.
• Reduced waste management costs: Lower disposal costs compared to traditional methods.
• Reduced exposure to fines and penalties: Compliance with evolving regulations minimized the risk of financial penalties.

This case study highlights how Milestone’s innovative approach to waste management, supported by CohnReznick’s financial expertise, not only addresses environmental challenges but also provides tangible financial benefits to all stakeholders involved.