CIP to Invest $500 Million in BKV CCUS Projects

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CIP to Invest $500 Million in BKV CCUS Projects

BKV Corp. and Copenhagen Infrastructure Partners (CIP) have agreed to form a joint venture (JV) on carbon capture, utilization and storage (CCUS) in the United States. Denver, Colorado-based BKV, a producer of natural gas and power, will contribute its stakes in existing and future CCUS projects to the JV. Meanwhile energy transition-focused Danish investor CIP […]

BKV Corp. and Copenhagen Infrastructure Partners (CIP) have agreed to form a joint venture (JV) on carbon capture, utilization and storage (CCUS) in the United States.

Denver, Colorado-based BKV, a producer of natural gas and power, will contribute its stakes in existing and future CCUS projects to the JV. Meanwhile energy transition-focused Danish investor CIP will invest $500 million in the JV for a stake of 49 percent.

“BKV has contributed to the JV its ownership of the Barnett Zero and Eagle Ford projects, and has committed to future contributions of CCUS projects, related assets and/or cash, in exchange for a 51 percent interest in the JV”, a joint statement said.

The Barnett Zero Project in the Texan city of Bridgeport has sequestered over 200,000 metric tons of carbon dioxide (CO2) equivalent emissions since it began operation November 2023. Serving natural gas processing plants, Barnett Zero has a sequestration rate of about 185,000 metric tons a year, according to BKV. It co-owns the project with EnLink Midstream LLC.

Meanwhile the proposed Eagle Ford Project, to be built at a natural gas processing plant in South Texas, is expected to reach full operation next year. BKV, which has partnered with a midstream company for the project, anticipates the sequestration rate to be around 90,000 metric tons per annum of CO2 equivalent. Approved by BKV December 2024, the project has received approval from the Texas Railroad Commission for its Class II injection well. A monitoring, reporting and verification plan has also been submitted to the United States Environmental Protection Agency for approval, according to BKV.

“The JV will leverage BKV’s standing as an early leader in developing CCUS projects while benefiting from CIP’s significant experience in developing low-carbon infrastructure projects”, the statement said. “BKV and CIP expect to identify investment-ready projects for development by the JV, with BKV serving as the operator of all of the JV’s CCUS projects”.

BKV chief executive Chris Kalnin said, “This strategic partnership with CIP, a world-scale asset manager of low-carbon infrastructure projects, further strengthens the economics of BKV’s CCUS business while enabling the acceleration of its growth”.

“This partnership accelerates our efforts to expand into adjacent markets, industries, and geographies”, Kalnin added.

CCUS is also part of BKV’s goal to achieve net-zero Scope 1 and Scope 2 emissions for owned and operated upstream and natural gas midstream operations by the early 2030s.

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