BKV Corp. Expands Strategic Partnership with Leading Midstream Operator to Advance Carbon Capture and Sequestration Development
BKV Corporation ("BKV" or the "Company") (NYSE:BKV) today announced the execution of an agreement with a leading diversified midstream energy company to develop a new carbon capture and sequestration ("CCS") 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 ("CO2") 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 ("JV") with Copenhagen Infrastructure Partners.
"Deepening our relationships with key partners demonstrates their confidence in our technical and operating expertise in developing and scaling carbon capture, utilization and sequestration projects," said Chris Kalnin, Chief Executive Officer of BKV. "As demand for low-carbon energy solutions continues to grow, we are pleased to expand our existing business relationship with one of the largest midstream providers in the United States."
The new CCS project adds to BKV's carbon capture, utilization and sequestration ("CCUS") 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.
About BKV Corporation
Headquartered in Denver, Colorado, BKV Corporation 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, including but not limited to assumptions, risks and uncertainties regarding our ability to successfully fund, pursue and develop our CCUS business; the expected increase in demand for power and our ability to serve that demand from our power business; and our ability to develop, market and sell our carbon sequestered gas product. 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 BKV's Annual Report on Form 10-K dated March 31, 2025. 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
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