February 13, 2025 — DENVER, CO
BKV Corporation (NYSE: BKV) has taken another major step forward in its carbon capture strategy with the development of the Cotton Cove CCS 1 project, a new carbon capture and sequestration (CCS) facility tied to a currently operating natural gas processing plant in South Texas. The project recently reached a key regulatory milestone, receiving a Project-by-Rule (PBR) New Registration Notice under Project #400218, officially marked as COMPLETE on November 3, 2025.
This development reinforces BKV’s expanding footprint in commercial-scale CCS deployment and supports the company’s long-term strategy to achieve net-zero emissions across its upstream and midstream portfolio.
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Air Permit Snapshot: Cotton Cove CCS 1
- Project Administrative Name: OGS New Project Notification for New Registration
- Technical Name: Cotton Cove CCS 1
- Permit Number: 182075
- Action Type: NOTIFYNEW (PBR)
- Received & Completed: November 3, 2025
- Regulated Entity #: RN112313986
- Customer Name: BKV Dcarbon Ventures LLC
- Review Authority: REGION 04 – DFW Metroplex
- County: Tarrant (administrative), though the operational site is in South Texas near Freer
- Fee Paid: $50 (ACH), Receipt #582EA000692923
While the administrative record lists the permit under BKV’s Tarrant County regulatory entity, the CCS facility itself is co-located with a natural gas processing plant in the Eagle Ford region.
Project Overview: Turning a Natural Gas Plant Into a Carbon Storage Hub
The natural gas facility near Freer, Texas, processes gas from the Eagle Ford Shale, generating a CO₂-rich waste stream. Under the new partnership:
How the CCS System Works
- CO₂ Purchase:
BKV will acquire the plant’s CO₂ waste stream. - Compression & Transport:
The CO₂ will be conditioned and transported to BKV’s newly developed injection site located adjacent to the processing plant. - Permanent Sequestration:
Injected into a Class II well approved by the Texas Railroad Commission, ensuring permanent underground storage. - Environmental Attribute Ownership:
BKV retains all environmental credits associated with the sequestration—an important component of emerging CCS-driven value streams.
Regulatory Status
- Class II injection well: Approved
- MRV (Monitoring, Reporting & Verification) Plan: Submitted to the U.S. EPA
- Final Investment Decision (FID): December 2024
- Target Operations Start: Q1 2026, pending final permits
- Forecasted Sequestration Rate: ~90,000 metric tons of CO₂e per year
This puts Cotton Cove CCS 1 among the early wave of operational CCS hubs tied directly to natural gas infrastructure in the Eagle Ford region.
Growing BKV’s CCUS Portfolio
The new project strengthens BKV’s broader CCUS program, which includes:
- Barnett Zero — BKV’s operational CCS facility in North Texas
- Cotton Cove CCS — A previously approved CCS site also targeting initial injection in early 2026
BKV’s model is notable: integrating upstream natural gas operations, midstream gathering, and CCS into a closed-loop system designed to deliver net-zero, gas-based energy.
Leadership Perspective
BKV CEO Chris Kalnin emphasized that the Cotton Cove partnership is a cornerstone in executing the company’s long-term emissions strategy:
“This new CCS project addition to our portfolio further demonstrates our commitment to achieving net-zero emissions from our owned and operated upstream and natural gas midstream businesses. Collaborating with one of the largest energy companies in the U.S. is critical for advancing our closed-loop, net-zero strategy of deploying profitable CCUS assets.”
Kalnin also highlighted that the partnership model—pairing BKV’s sequestration expertise with a major midstream operator’s infrastructure—positions BKV for repeatable CCS deployments across multiple basins.
Why This Project Matters
1. CCS Moves From Pilot to Scalable Deployment
This is not a demonstration project—BKV is deploying commercial, revenue-generating CCS tied directly to existing gas assets.
2. The Eagle Ford Gets Its First Major Dedicated CCS Asset
With strong natural gas output and high CO₂ purity streams, the Eagle Ford is an ideal early-stage CCS corridor.
3. Integration With Midstream Infrastructure
The partnership structure mirrors global CCS trends: pairing emitters with specialized sequestration providers.
4. Continued Expansion of BKV’s Net-Zero Strategy
BKV is building one of the most advanced CCS-enabled natural gas portfolios in the country.
About BKV Corporation
Based in Denver, BKV is a fast-growing natural gas producer and integrated energy company operating across four business lines:
- Upstream natural gas production
- Gathering, processing, and transportation
- Power generation
- Carbon capture, utilization, and sequestration (CCUS)
Founded in 2015, BKV is now one of the top 20 gas-weighted producers in the United States and the largest natural gas producer in the Barnett Shale.
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