BKV and EnLink Midstream Commence First Carbon Capture and Sequestration Project in the Barnett Shale

Rhea-AI Summary

BKV Corporation (BKV) & EnLink Midstream, LLC (NYSE: ENLC) initiate carbon capture & sequestration project at Barnett Zero facility, aiming to reduce CO2 emissions from natural gas production in Texas' Barnett Shale. Forecasted to sequester up to 210,000 metric tons of CO2e per year. BKV plans to achieve net-zero emissions by early 2030s.

Positive

• The project marks a significant step towards reducing CO2 emissions associated with natural gas production in the Barnett Shale.
• BKV aims to achieve net-zero Scope 1, 2, and 3 emissions from its upstream operations by the early 2030s.
• EnLink's commitment to reducing emissions and creating shareholder value is reflected in the commencement of operations for the Barnett Zero project.
• The project received approval from the Texas Railroad Commission and the United States Environmental Protection Agency, ensuring compliance with greenhouse gas reporting regulations.

Negative

• None.

DENVER, Nov. 13, 2023 /PRNewswire/ -- BKV Corporation (BKV) and EnLink Midstream, LLC (NYSE: ENLC) (EnLink) announced today the initial injection of carbon dioxide (CO₂) waste generated from EnLink's Bridgeport natural gas processing plant, and neighboring operations, at BKV's Barnett Zero carbon capture and sequestration (CCS) facility, marking a major step toward reducing CO₂ emissions associated with BKV's natural gas production in north Texas' Barnett Shale. Barnett Zero is one of the first purpose-drilled, Class II commercial carbon sequestration well injecting CO₂ waste from natural gas processing plants in the United States, and with the initial injection, BKV and EnLink will be among the first energy companies to have commercial carbon capture and sequestration operations in the nation.

EnLink will transport the natural gas produced by BKV in the Barnett to its natural gas processing plant in Bridgeport, Texas, where the CO₂ waste stream will be captured and transported to a BKV facility, compressed, and then sequestered via BKV's nearby underground injection control well. The project is forecasted to achieve an average sequestration rate of up to approximately 210,000 metric tons of CO₂e per year over the course of the project life. The initial CO₂ injection at the Barnett Zero facility recently commenced operations safely and ahead of schedule.

"We are thrilled to officially commence our Barnett Zero Project and begin our newest chapter - commercial CCS operations," said Chris Kalnin, Chief Executive Officer of BKV. "BKV has an actionable path to net-zero Scope 1, 2 and 3 emissions from its upstream operations by the early 2030s and is committed to achieving net zero Scope 1 and 2 emissions from its upstream operations by the end of 2025. Executing at Barnett Zero and building our CCS business is an important part of this journey and our mission to deliver a carbon-sequestered natural gas product to the world."

Through the project, BKV and EnLink will dispose of and geologically sequester CO₂ generated as a byproduct of the production of BKV's natural gas in the Barnett Shale. BKV and EnLink aim to reduce greenhouse gas emissions in the atmosphere by capturing CO₂ emitted in connection with natural gas production activities, both from their own operations and from third parties.

"This project clearly demonstrates EnLink's commitment to reducing emissions from our own operations and creating shareholder value," said Jesse Arenivas, Chief Executive Officer of EnLink. "The commencement of operations for the Barnett Zero project with BKV reflects tangible progress on EnLink's vision to create the future of midstream. EnLink now has carbon flowing through our pipelines, and I believe this will be the first of many CCS projects EnLink sees to fruition."

The Class II well and initial CO₂ injection at the Barnett Zero project were approved by the Texas Railroad Commission and the project's Monitoring, Reporting and Verification Plan was approved by the United States Environmental Protection Agency in accordance with Subpart RR of the Greenhouse Gas Reporting Program. BKV intends to use the Barnett Zero project as a modular prototype that can repeated and quickly scaled for future Class II and Class VI wells, as applicable.

BKV forecasts that its second CCS project, referred to as Cotton Cove, will commence commercial operations by the end of 2024 and achieve an average sequestration rate of up to approximately 45,000 metric tons of CO₂ per year over the course of the project life. BKV reached internal final investment decision (FID) on the Cotton Cove project in late 2022 and is developing the project as a joint venture with Banpu Power US Corporation. BKV is actively pursuing the expansion of both the Barnett Zero and Cotton Cove projects, envisioning a future where these initiatives pilot and scale post-combustion carbon capture technology.

In addition to the Barnett Zero and Cotton Cove projects, BKV has identified three additional potential natural gas processing projects aimed at sequestering third-party emissions and expects to reach FID on such projects in either late 2023 or 2024. If approved and implemented, these three natural gas processing projects would provide a combined forecasted annual sequestration volume of at least approximately 970,000 metric tons per year of captured CO2e.

About BKV Corporation 
Headquartered in Denver, Colorado, BKV Corporation (BKV) is a forward-thinking, growth-driven energy company focused on creating value for its stockholders. BKV's core business is to produce natural gas from its owned and operated upstream businesses. BKV (and its predecessor entity) was founded in 2015, and BKV and its employees 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 by gross operated volume in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies.

About EnLink Midstream
EnLink Midstream reliably operates a differentiated midstream platform that is built for long-term, sustainable value creation. EnLink's best-in-class services span the midstream value chain, providing natural gas, crude oil, and NGL capabilities, and carbon capture, transportation, and sequestration services. Our purposely built, integrated asset platforms are in premier production basins and core demand centers, including the Permian Basin, Oklahoma, North Texas, and the Gulf Coast. EnLink's strong financial foundation and commitment to execution excellence drive competitive returns and value for our employees, customers, and investors. Headquartered in Dallas, EnLink is publicly traded through EnLink Midstream, LLC (NYSE: ENLC). Visit www.EnLink.com to learn how EnLink connects energy to life.

Forward-Looking Statements
This communication includes forward-looking statements. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws. Any statements herein regarding future events, such as carbon emission reduction goals, new business opportunities, growth objectives and any other statements that are not historical facts, are forward-looking statements. These forward-looking statements involve certain risks and uncertainties, many of which are beyond the parties' control, that could cause actual results to differ materially from those indicated in such forward-looking statements, including, but not limited to risks relating to climate change, regulatory restrictions and other risks relating to the parties' operations. These forward-looking statements speak only as of the date of this communication, and each of BKV and EnLink expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein.

Contact:
Becky Escott, BKV Corporation
817.757.2668
media@bkvcorp.com

Megan Wright, EnLink Midstream
Media Relations
214.721.9694
megan.wright@enlink.com 

Brian Brungardt, EnLink Midstream
Investor Relations
214.721.9353
brian.brungardt@enlink.com

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SOURCE BKV

FAQ

What is the purpose of the Barnett Zero project initiated by BKV and EnLink?

The purpose of the Barnett Zero project is to reduce CO2 emissions associated with natural gas production in Texas' Barnett Shale by capturing and sequestering CO2 waste from EnLink's natural gas processing plant.

What is the forecasted sequestration rate of the Barnett Zero project?

The project is forecasted to achieve an average sequestration rate of up to approximately 210,000 metric tons of CO2e per year over the project's lifespan.

What are BKV's emissions reduction targets?

BKV aims to achieve net-zero Scope 1, 2, and 3 emissions from its upstream operations by the early 2030s, with a commitment to achieving net zero Scope 1 and 2 emissions by the end of 2025.

What regulatory approvals were obtained for the Barnett Zero project?

The Class II well and initial CO2 injection at the Barnett Zero project were approved by the Texas Railroad Commission, and the project's Monitoring, Reporting and Verification Plan was approved by the United States Environmental Protection Agency in accordance with Subpart RR of the Greenhouse Gas Reporting Program.

What is the status of BKV's Cotton Cove project?

BKV forecasts that its second CCS project, Cotton Cove, will commence commercial operations by the end of 2024 and achieve an average sequestration rate of up to approximately 45,000 metric tons of CO2 per year over the project's lifespan.

What are BKV's future plans for carbon capture technology?

BKV envisions piloting and scaling post-combustion carbon capture technology through the expansion of initiatives like the Barnett Zero and Cotton Cove projects, as well as potential future natural gas processing projects.