A strategic partnership with a leading diversified midstream energy company, has now been formed by BKV. This partnership will focus on developing a new CCS facility, which will be based at a currently operating natural gas plant, located within South Texas.

This natural gas processing plant, which is located in South Texas, specifically near the city of Freer, operates through processing natural gas which is produced in the Eagle Ford Shale. Through the newly formed partnership, it has been agreed that BKV will buy the CO2 waste stream from the plant, at which point it will then be compressed and shortly after that it will be transported and permanently sequestered through BKV’s injection well. This injection well is located at an adjacent site.

It is already clear that the planned CCS facility will add to BKV’s CCUs portfolio and right now this portfolio already includes the operational CCS facility, based at the Company’s Barnett Zero site, which is in north Texas. The portfolio also contains the Cotton Cove CCS project, which has now managed to reach the FID stage and it is soon due to begin its initial sequestration operations throughout the first half of 2026.

Furthermore, it has been announced that the Texas Railroad Commission has already approved the project’s Class II injection well and now a plan around monitoring, reporting and verification (MRV), has been submitted to the United States Environmental Protection Agency. From here, the project has to wait for approval from this agency.

It was in mid-December 2024 when the project reached a final investment decision. Once the project is fully operational, most likely into the first quarter of 2026, it has been predicted that the facility will be able to achieve an average sequestration rate of around 90,000 metric tons of CO2 equivalent every year.

Chief Executive Officer of BKV, Chris Kalnin, commented, “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. 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.”