Insider Brief
- BKV Corporation has formed a strategic joint venture with Copenhagen Infrastructure Partners (CIP), committing $500 million to expand carbon capture, utilization, and sequestration (CCUS) projects across the U.S.
- BKV will hold a 51% stake and contribute existing projects, including Barnett Zero and Eagle Ford, while CIP will invest for up to a 49% interest via its Energy Transition Fund I.
- The JV combines BKV’s operational CCUS expertise with CIP’s infrastructure development experience to scale low-carbon energy solutions, with BKV serving as project operator.
PRESS RELEASE – BKV Corporation (“BKV” or the “Company”) (NYSE: BKV) announced the formation of a strategic joint venture (the “JV”) between BKV dCarbon Ventures, LLC (“dCarbon Ventures”), BKV’s wholly-owned subsidiary, and Copenhagen Infrastructure Partners (“CIP”), on behalf of its Energy Transition Fund I, to expand BKV’s portfolio of carbon capture, utilization and sequestration (“CCUS”) projects.
CIP, on behalf of its Energy Transition Fund I, has agreed to commit $500 million to be invested by the JV for use in designing, constructing and operating CCUS projects across the United States in exchange for up to a 49% interest in the JV. 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% interest in the JV.
The JV will leverage BKV’s standing as an early leader in developing CCUS projects while benefitting from CIP’s significant experience in developing low-carbon infrastructure projects. 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.
“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,” said Chris Kalnin, Chief Executive Officer of BKV. “Together, we will expand our pipeline of carbon capture, utilization 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.”
BKV’s CCUS portfolio consists of numerous previously announced projects in various stages of development, two of which have been contributed to the JV initially. The Barnett Zero Project in North Texas has sequestered over 200,000 tons of CO2 equivalent since start up in November 2023, and the Eagle Ford Project in South Texas is forecasted to achieve an initial injection in the first half of 2026, subject to receipt of all required permits and execution of necessary definitive agreements. Additional projects within BKV’s vast and growing CCUS portfolio are expected to be contributed to the JV as they progress.
Jefferies LLC served as the exclusive financial advisor in this transaction. The deal was led by Ananth Shankar, Managing Director, Energy Transition. BakerHostetler acted as legal counsel to BKV.
