BKV and ENGIE Collaborate to Introduce Carbon Sequestered Gas
DENVER, Sept. 10, 2023 -- BKV Corporation ("BKV") and ENGIE Energy Marketing NA, Inc, a subsidiary of global energy utility ENGIE S.A. (ENGIE), announced the signing of a contract for the sale and purchase of natural gas and associated Carbon Sequestered Credits, a new measured, third-party verified, carbon sequestered product. This landmark agreement brings together two industry leaders dedicated to addressing climate change.
Under the innovative arrangement, BKV will deliver to ENGIE physical natural gas, as well as an equivalent amount of gas tokens that represent the environmental attributes associated with both responsibly sourced gas (RSG) production and capturing carbon dioxide from the gas stream and injecting it into a permitted facility owned by BKV. The CO2 sequestration project underpinning this transaction is BKV's Barnett Zero project, located in Bridgeport, Texas. The CO2 capture and sequestration will be third-party certified.
With first injection expected in December 2023, Barnett Zero is expected to be one of the first purpose-built permanent commercial CO2 disposal and sequestration projects to come online in the United States. BKV estimates that the project will achieve an average sequestration rate of up to approximately 210,000 metric tons of CO2e per year over the course of the project life. Following first injection at Barnett Zero and satisfaction of other conditions precedent, delivery of Carbon Sequestered Gas is expected to commence in Q1 2024.
Under the contract terms, BKV is committed to deliver up to 10,000 MMBtu/day of independently certified Carbon Sequestered Gas to ENGIE.
"We are thrilled to collaborate with ENGIE to introduce a differentiated gas product to the energy industry," said Chris Kalnin, Chief Executive Officer of BKV. "This collaboration aligns with our mission to help create a better world through our emission reduction and energy impact goals. We believe that our production of Carbon Sequestered Gas can scale to meet future energy needs and that this product will be synergistic with other approaches to sustainable energy helping to advance the reduction in greenhouse gas emissions."
"ENGIE is proud to work with BKV in its development of innovative, differentiated gas products that are key to ensuring the role that natural gas can play as part of the energy transition," said Ken Robinson, President of ENGIE Energy Marketing NA. "This transaction is representative of ENGIE's commitment to reduce greenhouse gas emissions and to limit environmental impact of its activities."
"Carbon Sequestered Gas represents an opportunity for end-users to purchase measured and verified differentiated natural gas that is certified and registered using blockchain technology. We believe this level of transparency and trust is critical for the energy transition," said Kalnin.
If you would like to learn more about BKV's carbon sequestered natural gas offerings, please contact Sunil Patel at [email protected].
About BKV Corporation
Headquartered in Denver, Colorado, BKV is a privately held, forward-thinking, growth-driven, energy company focused on creating value for our stockholders. BKV's core business is to produce natural gas from its owned and operated upstream businesses, which BKV expects to achieve net zero Scope 1 and Scope 2 emissions by the end of 2025. Founded in 2015, BKV has approximately 370 employees across the U.S. that 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 in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit www.bkv.com.
About the ENGIE Group
The ENGIE Group (made up of ENGIE S.A. and its subsidiaries and affiliates) is a global leader in low-carbon energy and services. With its 96,000 employees, its customers, partners and stakeholders, the Group is committed to accelerate the transition toward a carbon-neutral world, through reduced energy consumption and more environmentally-friendly solutions. Inspired by its purpose ("raison d'être"), ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its customers. ENGIE S.A. (ENGI), is listed on the Paris and Brussels Stock Exchanges.
In North America, ENGIE companies have delivered integrated, innovative energy solutions to public and private organizations for nearly half a century. We employ approximately 3,000 people focused on enabling our customers to become more sustainable and achieve their decarbonization targets through expert project delivery and competitive solutions. For more information on ENGIE in North America, please visit our LinkedIn page or Twitter feed, https://www.engie-na.com/ and https://www.engie.com.
Becky Escott, BKV Corporation
Michael Clingan, ENGIE North America