EPA Clears Flotek's VeraCAL for Refinery Flare Monitoring

The U.S. Environmental Protection Agency has approved Flotek Industries' VeraCAL optical monitoring system to measure flare vent gas composition and net heating value at petroleum refineries. The approval, issued under 40 CFR Part 63, Subpart CC — the MACT CC rule governing hazardous air pollutant emissions from petroleum refineries — positions VeraCAL as an approved alternative to gas chromatography for flare compliance measurement.

The decision is the second EPA alternative-method approval for the system. EPA first authorized VeraCAL in July 2024. Flotek expects the new milestone to expand its Data Analytics business by opening refinery compliance-monitoring contracts, where continuous gas-quality measurement is a regulatory requirement.

What does the approval change?

Under MACT CC, refinery operators must meet flare-monitoring and emissions-control requirements, which creates sustained demand for reliable measurement technology. Traditional gas chromatography relies on chromatographic separation and typically requires supporting equipment and ongoing maintenance. VeraCAL takes a different route: optical measurement that assesses gas properties continuously, without carrier gas or chromatographic separation.

Flotek says the system's near-real-time monitoring can deliver actionable data while simplifying flare-monitoring requirements. The company designed VeraCAL for demanding industrial environments, and it argues the system can help operators cut monitoring-related maintenance and manage operating costs. Any actual savings will depend on site-specific conditions, the company acknowledges.

Flotek Chief Executive Officer Dr. Ryan Ezell framed the approval as a step toward scaling the Data Analytics segment. He said the approval supports the company's expansion in refinery compliance operations and highlighted the need for dependable measurement technology that supports regulatory compliance while improving routine refinery operations.

How large is the addressable market?

The United States operated 130 petroleum refineries as of January 1, 2026, according to figures cited by Flotek. That installed base defines the immediate commercial opportunity for VeraCAL adoption.

The market could widen further. Recent EPA rulemakings have extended refinery-style flare-monitoring requirements to certain chemical manufacturing and gasoline distribution operations, which would push the technology's application beyond conventional petroleum refining.

Flotek's Data Analytics segment is building its position around VeraCAL technology and associated monitoring services. The company believes the latest approval strengthens its standing in compliance measurement and could help it attract additional refinery customers, expand its customer base and increase adoption of data-driven monitoring solutions.

What are the commercial limits?

The approval establishes a regulatory pathway, not a guaranteed order book. Commercial growth will depend on customer adoption, installation requirements, competing technologies and the economics of replacing or supplementing existing monitoring systems, Flotek notes. The EPA decision does not guarantee immediate orders or widespread deployment.

For chemical commodities, the price impact is likely limited. The approval does not directly change production capacity, feedstock availability or trade flows. Over time, wider flare-monitoring requirements could modestly increase demand for monitoring equipment and compliance services across refineries and selected chemical plants, without materially shifting commodity prices.

What happens next?

The metric to watch is contract conversion: whether Flotek converts the MACT CC approval into refinery compliance-monitoring contracts and recurring data-service revenue across the 130-facility base. Additional EPA rulemakings extending flare-monitoring requirements to chemical manufacturing and gasoline distribution would expand the addressable market further. Each new refinery installation will test whether continuous optical measurement can displace conventional gas chromatography on cost and performance.