BKV and NuQuest Energy Announce Carbon Sequestration Agreement with the State of Louisiana

DENVER, Aug. 10, 2023 /PRNewswire/ -- BKV Corporation (BKV) and NuQuest Energy LLC (NuQuest) announced today that they entered into a carbon sequestration agreement with the State of Louisiana to develop facilities and permanently sequester carbon dioxide from local emissions sources, supporting the goal to reduce their carbon footprints and supporting BKV's commitment toward achieving net-zero carbon emissions in its upstream businesses.

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The State of Louisiana granted the carbon storage and sequestration rights on approximately 21,000 acres of land in St. Charles and Jefferson Parishes to High West Sequestration, LLC. The acreage is in an ideal location for targeted carbon dioxide capture and sequestration efforts, with an estimated 22 MM tons per year, within a 15 mile radius from various emissions points.

In addition, the High West storage site has a large carbon dioxide storage potential, estimated between 140 MM to 1,000 MM metric tons of CO2e, subject to further evaluation, planning, and development design decisions. Carbon capture and sequestration is the process of capturing and permanently storing carbon dioxide, which reduces the amount of pollutive carbon dioxide in the atmosphere.

Under the agreement, High West Sequestration, LLC, a wholly owned subsidiary of BKV Corporation and a member of the BKV family of companies, will dispose of carbon dioxide waste from local emissions sources through permanent sequestration via injection wells on the designated acreage.

BKV Chief Executive Officer Chris Kalnin said, "It is critical that companies in our industry work together with various emitters and other industries to bring actionable change and move large-scale carbon reduction projects forward. This partnership allows us to move forward with significant sequestration efforts and brings us one step closer to the production of measured net zero natural gas, a carbon neutral natural gas product."

NuQuest Co-Founder Kirk Barrell said, "NuQuest Energy has levered its 120 years of petroleum industry experience to identify, evaluate, and develop a world class carbon sequestration site geographically focused on the Mississippi River corridor. We're excited to partner with BKV, the State of Louisiana, and local stakeholders on this project."

BKV has previously demonstrated their commitment to carbon reduction activities, by launching a dedicated carbon capture, utilizations and sequestration (CCUS) business line, BKV dCarbon Ventures, and equipping it with the resources needed to evaluate and build a pipeline of feasible CCUS projects. BKV dCarbon Ventures has a strategic focus on permanent sequestration of point-source emission and is focused on driving CCUS innovations and project development.

"This agreement reinforces our commitment to leading the way in the production of measured net-zero natural gas," BKV Vice President dCarbon Ventures Lauren Read said. "We look forward to being a leader in CCUS in Louisiana and working with the State, NuQuest, and other like-minded companies, who are ready to address climate change head-on."

About BKV Corporation

Headquartered in Denver, Colorado, BKV Corporation (BKV) is a privately held, forward-thinking, growth-driven, energy company focused on creating value for our stockholders. BKV's core business is to produce natural gas from its owned and operated upstream businesses, which BKV expects to achieve net zero Scope 1 and Scope 2 emissions by the end of 2025. Founded in 2015, BKV has approximately 370 employees across the U.S. that 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 in the Barnett Shale. BKV Corporation is the parent company for the BKV family of companies. For more information, visit www.bkv.com.

About NuQuest Energy, LLC

Headquartered in New Orleans, Louisiana, NuQuest Energy, LLC is a renewables development company pursuing an aggressive plan to assemble and construct a diverse portfolio of utility, industrial, and corporate solar and carbon sequestration projects across the United States with a current focus on Louisiana, Texas, Arkansas, and Mississippi. The company leverages existing relationships and project development experience to build a robust, scalable renewables portfolio of projects.