CIP to invest $500 million in BKV carbon capture joint venture

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🗞️ Driving the news: BKV Corp. and Copenhagen Infrastructure Partners (CIP) have announced a $500 million joint venture to scale carbon capture projects in the United States
• The Denmark-based CI Energy Transition Fund I will take up to a 49% stake in the venture, which will include BKV’s two existing CCS projects and aims to expand rapidly amid shifting U.S. climate policy dynamics

🔭 The context: BKV, a major natural gas producer in Texas's Barnett Shale, is pursuing a net-zero strategy for the 2030s
• With CIP’s backing, the company will avoid financing CCS expansion through upstream revenues alone
• The move comes at a politically uncertain time, as U.S. tax credits for carbon capture — introduced via the Inflation Reduction Act — face potential rollback under the Trump administration’s proposed budget revisions

🌍 Why it matters for the planet: This investment signals strong international confidence in U.S.-based CCS despite political headwinds
• The venture could sequester over 11 million tonnes of CO₂ annually by 2030 — equivalent to taking more than 2 million cars off the road per year
• It reinforces CCS as a key tool for decarbonising the fossil fuel sector while positioning natural gas producers as players in the clean energy transition

⏭️ What's next: CIP may contribute an additional $500 million as the venture identifies more CCS opportunities across Texas and the Gulf Coast
• BKV also aims to commercialize carbon-neutral gas products, potentially fetching price premiums in markets like power generation and data centers
• The continuation of federal tax credits will be critical, and industry stakeholders are closely watching ongoing budget negotiations in Congress

💬 One quote: “What you’re seeing is really an opportunity for a contrarian believer in carbon capture to take a commanding lead in the industry,” — Chris Kalnin, CEO of BKV Corp.

📈 One stat: BKV expects to sequester over 11 million metric tonnes of CO₂ annually by 2030 through its CCS projects

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