BKV, in partnership with Copenhagen Infrastructure Partners (CIP), has established a carbon capture joint venture (JV) investment aimed at advancing carbon capture, utilisation and sequestration (CCUS) projects across the US.
CIP, through its Energy Transition Fund I, will invest $500m for up to a 49% stake in the JV.
The JV will capitalise on BKV's expertise as an early pioneer in CCUS projects, complemented by CIP's experience in developing low-carbon infrastructure.
The collaboration is set to enhance BKV's existing portfolio of CCUS initiatives, with the Barnett Zero and Eagle Ford projects already integrated into the venture.
BKV will maintain operational control of the JV's projects, holding a 51% interest.
BKV's CCUS portfolio, which includes several projects at different stages of development, is expected to contribute further to the JV as they progress.
BKV CEO 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.
“Together, we will expand our pipeline of carbon capture, utilisation and sequestration projects to help meet the increasing demand for low-carbon energy solutions. By combining BKV’s technical and operating expertise in developing and scaling CCUS projects with CIP’s expansive network, project portfolio and experience in infrastructure development, we are well positioned to grow our CCUS business. This partnership accelerates our efforts to expand into adjacent markets, industries and geographies.”
The Barnett Zero Project in north Texas has already sequestered more than 200,000 tonnes of CO₂ equivalent since its inception in November 2023.
The Eagle Ford Project in south Texas is projected to commence initial injection by the first half of 2026, pending all necessary permits and agreements.
Jefferies led the financial advisory for the transaction, while BakerHostetler provided legal counsel to BKV.
Earlier in the month, BKV also entered into a preliminary agreement with Comstock Resources to explore carbon capture initiatives, further solidifying BKV's commitment to CCUS solutions within the energy sector.
