BKV Corporation (“BKV”) (NYSE: BKV) 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.”
