BKV, CIP Form Joint Venture to Invest $500M in Carbon Capture
The project will develop more CCUS opportunities across the U.S.
The proceeds will be used to design, build, and run projects that capture and store carbon emissions.
Denver-based energy company BKV Corporation ("BKV") has formed a joint venture ("JV) with Copenhagen Infrastructure Partners ("CIP"), a global leader in energy infrastructure investments, to expand work on carbon capture, utilisation, and storage (CCUS).
The partnership will be run through BKV’s subsidiary, dCarbon Ventures, and CIP’s Energy Transition Fund I. The objective is to reduce carbon emissions from industrial activities and store carbon dioxide (CO₂).
In this joint venture, BKV holds a 51% stake and manages and operates the project, while CIP owns a 49% interest and invests $500 million. In exchange for the majority stake, BKV has contributed its existing CCUS projects, Barnett Zero and Eagle Ford, to the JV and has also said it will add more projects, assets, or cash in the years to come.
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The companies will leverage their respective expertise to bring this project to fruition. To this end, BKV provides technical expertise in developing CCUS projects, while CIP contributes capital along with its global experience in building low-carbon infrastructure. This collaboration will bring new CCUS opportunities in the U.S.
The Barnett Zero Project has already stored over 200,000 tonnes of CO₂ since it began operating in November 2023 in North Texas. In the meantime, in South Texas, the Eagle Ford Project is preparing for operations, likely to start in 2026.
Chris Kalnin, BKV CEO, 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, 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.”
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Source: BKV
