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.