ENGIE in SPA for RSG and carbon sequestration credits
Privately-held energy company BKV Corporation of Denver said September 10 it had entered into a contract with France’s ENGIE for the sale and purchase of natural gas and associated carbon sequestered credits.
Under the agreement, BKV will deliver physical natural gas to ENGIE Energy Marketing as well as an equivalent amount of gas tokens that represent the environmental attributes associated with both responsibly sourced gas (RSG) and captured CO2 from the gas stream that has been injected into a permitted facility owned by BKV.
The CO2 sequestration project underpinning the arrangement is BKV’s Barnett Zero project, located in Bridgeport, Texas. The CO2 capture and sequestration will be third-party certified.
When first CO2 injections take place in December 2023, Barnett Zero is expected to be one of the first purpose-built commercial CO2 disposal and sequestration project to come online in the US. BKV estimates Barnett Zero will sequester up to 210,000 tonnes/year of CO2-equivalent.
Following first CO2 injections and the satisfaction of other conditions precedent, ENGIE Energie Marketing is expected to begin taking delivery of up to 10,000mn Btu/day of independently certified carbon sequestered gas in Q1 2024. In March 2022 BKV said it would engage Project Canary to certify production from its Barnett Shale assets in Texas and its Marcellus Shale operating area in Pennsylvania.