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 Corporation said it is partnering with an undisclosed “leading diversified midstream company” to develop a new carbon capture and sequestration (CCS) facility at a currently operating natural gas plant in South Texas.

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, the company said in a news release.

BKV noted that it will retain the environmental attributes associated with the CCS project. The project reached a final investment decision (FID) in December 2024.

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, BKV said.

BKV expects the project to be fully operational in the first quarter of 2026, subject to receipt of all required permits. The facility is forecast to achieve an average sequestration rate of approximately 90,000 metric tons per year of carbon dioxide (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, according to the release.

“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,” BKV CEO Chris Kalnin said.

“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,” Kalnin added.

In June 2024, BKV announced a contract for the sale and purchase of carbon sequestered gas (CSG) with Kiewit Infrastructure South Co., a subsidiary of Kiewit Corporation.

CSG is a natural gas product that is Scope 1, 2 and 3 carbon-neutral, effectively mitigating the environmental impact of natural gas consumption, BKV said in an earlier statement. CSG is generated by pairing low methane intensity natural gas and offsetting emissions associated with the entire gas value chain.

Kiewit Infrastructure South's Fort Worth Maintenance Facility receives the gas directly from a pipeline being built to service their facility as well as the entire Markum Business Park, where the facility is located.

Headquartered in Denver, Colorado, BKV’s core business is producing natural gas from its owned and operated upstream businesses. BKV is one of the top 20 gas-weighted natural gas producers in the USA and the largest natural gas producer by gross operated volume in the Barnett Shale.