BKV Announces FID on Carbon Capture Project with Leading Midstream Operator
BKV Corporation ("BKV" or the "Company") (NYSE:BKV) today announced a strategic partnership with a leading diversified midstream energy company to develop a new carbon capture and sequestration ("CCS") facility at a currently operating natural gas plant in South Texas. This partnership underscores BKV's commitment to reducing its emissions footprint through the development of profitable CCS assets and sets the stage for collaboration on future projects between the two companies.
The natural gas processing plant, located near the city of Freer in south Texas, processes natural gas produced in the Eagle Ford Shale. Under the announced partnership, BKV will purchase the carbon dioxide ("CO2") waste stream from the plant, which will then be compressed, transported and permanently sequestered via BKV's injection well at an adjacent site. BKV will retain the environmental attributes associated with the CCS project. The Texas Railroad Commission has approved the project's Class II injection well and a monitoring, reporting and verification ("MRV") plan has been submitted to the United States Environmental Protection Agency for approval. The project reached a final investment decision ("FID") in mid-December 2024. When the project is fully operational, which is expected in the first quarter of 2026 (subject to receipt of all required permits), the facility is forecasted to achieve an average sequestration rate of approximately 90,000 metric tons per year of CO2 equivalent.
The new CCS facility adds to BKV's carbon capture, utilization and sequestration ("CCUS") portfolio, which includes the operational CCS facility at the Company's Barnett Zero site in north Texas and the Cotton Cove CCS project, which has reached FID and is expected to begin initial sequestration operations in the first half of 2026.
"This new CCS project addition to our portfolio further demonstrates our commitment to achieving net-zero emissions from our owned and operated upstream and natural gas midstream businesses and showcases the execution of our differentiated business model to make this vision a reality," said Chris Kalnin, Chief Executive Officer of BKV. "Collaborating with one of the largest energy companies in the United States is critical for advancing our closed loop, net-zero strategy of deploying profitable CCUS assets. We are thrilled at the opportunity to continue deployments of our emissions reduction technology."
About BKV Corporation
Headquartered in Denver, Colorado, BKV Corporation (BKV) is a forward-thinking, growth-driven energy company focused on creating value for its stockholders. BKV's core business is to produce natural gas from its owned and operated upstream assets. BKV's overall business is organized into four business lines: natural gas production; natural gas gathering, processing and transportation; power generation; and carbon capture, utilization and sequestration. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees are committed to building a different kind of energy company. BKV is one of the top 20 gas-weighted natural gas producers in the United States and the largest natural gas producer by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit the BKV website at www.bkv.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. Forward-looking statements, which are not historical facts, include statements regarding BKV's strategy, future operations, prospects, plans and objectives of management, and often contain words such as "expect," "project," "estimate," "believe," "anticipate," "intend," "budget," "plan," "seek," "envision," "forecast," "target," "predict," "may," "should," "would," "could," "will," the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements discussed in BKV's filings with the United States Securities and Exchange Commission (the "SEC"), including the "Risk Factors" section of the prospectus filed by BKV with the SEC on September 27, 2024. BKV undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
SOURCE: BKV Corporation
View source version on businesswire.com: https://www.businesswire.com/news/home/20250213592412/en/
For BKV
Media Contact
Becky Escott
BKV Corp.
Director, Corporate Communications
[email protected]
Investor Contacts
David Tameron
BKV Corp.
Vice President, Investor Relations
[email protected]