BKV Corp. executes strategic partnership with midstream energy company

BKV Corp. (BKV) announced the execution of an agreement with a diversified midstream energy company to develop a new carbon capture and sequestration project at a currently operating natural gas processing plant in East Texas. The agreement expands on a previously announced agreement between the companies to develop a separate CCS project at a location in South Texas. The new CCS project will be constructed on the same site as an existing East Texas natural gas processing plant and is expected to be operational in early 2027. Under the terms of the agreement, BKV forecasts approximately 70,000 metric tons per year of carbon dioxide waste stream could be captured at the plant, which would then be delivered to BKV to be compressed, transported and permanently sequestered via BKV’s co-located Class II injection well. The co-located Class II injection well eliminates the need to invest in a high-pressure pipeline. The East Texas CCS project will be owned by BKV, but may be transferred to the company’s recently announced CCS joint venture with Copenhagen Infrastructure Partners. The new CCS project adds to BKV’s carbon capture, utilization and sequestration portfolio, which includes the operational CCS project at the Company’s Barnett Zero site in north Texas, the aforementioned South Texas project and the Cotton Cove CCS project, which has reached FID and remains on track to begin initial sequestration operations in the first half of 2027.