BKV, ENGIE Sign Sale/Purchase Agreement for Carbon Storage Credits, Natural Gas
ENGIE has purchased natural gas and carbon sequestered credits (CSC) from BKV, joining the companies in a Texas-based sequestration project.
BKV Corporation (BKV) and ENGIE Energy Marketing (ENGIE) have signed a sale and purchase agreement for physical natural gas and CSC, which represent the environmental impact of responsibly sourced gas (RSG) production and CO2 capture from the gas stream. BKV will deliver to ENGIE natural gas and the associated gas tokens that will be injected into BKV’s sequestration project, the Barnett Zero project, in Bridgeport, TX.
"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."
Site of BKV's Barnett Zero project; Image Credits: BKV
The first CO2 injection is slated for December 2023; BKV estimates that Barnett Zero will sequester approximately 210,000 metric tons of CO2e annually. Delivery of carbon sequestered gas will take place in Q1 2024—BKV must supply ENGIE with up to 10,000 MMBtu/day of certified carbon sequestered gas.
"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."
Kalnin said: "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."
