BKV Corporation—an energy company that believes climate change is real. Yes, you read that right. BKV’s CEO Chris Kalnin believes that it is time for energy companies to “own their impact and be responsible for driving solutions to climate change.”
Here are some of the most common questions Kalnin receives around BKV’s efforts to lead the industry toward the safe and profitable production of low-impact, sustainable natural gas.
Why was BKV created and how does its mission address climate change?
We had the simple idea that the unquenchable demand for energy and the need to take care of the planet would require the creation of a different kind of energy company. BKV was created in 2015 and since then, we have enlisted the smartest talent, set aggressive operational targets, and defined a clear strategic path to lead the industry toward the safe and profitable production of net-zero natural gas.
Our climate change efforts run in parallel with our sustainability mission to diversify and support energy transition to reduce our country’s dependence on foreign energy. We want to prove that the production of low-impact, sustainable energy isn’t simply a good idea, it’s good business.
Few—if any—energy companies have risen from start-up to a top 20 U.S. natural gas producer and the largest natural gas producer in the Barnett Shale in just seven years. How did BKV do this?
We focused on maintaining a clear strategy, being nimble, and having strong values to guide our company. If something operationally or transactionally does not create value or align with who we are, we don’t do it. With a clear strategy in place, we can operate at the highest level of integrity to take smart risks, leverage growth through acquisition, and build strategic partnerships.
What is the current state of the global energy market and how does it impact BKV’s business?
Russia’s war in Ukraine has dramatically impacted our beliefs about the future of energy and many countries are actively seeking to diversify their natural gas supply towards LNG alternatives. As a private energy company focused on acquiring and developing high-quality natural gas production, midstream, and power assets, we have made several acquisitions over the past two years that position BKV to support energy transition as a leader in producing low-impact, carbon-based energy that is profitable and builds a cleaner, healthier world.
BKV outlines its path to reaching net-zero emissions across Scope 1 and 2 by 2025. How will the company do this?
We have a “closed-loop,” four-step approach to net-zero. It starts with implementing a robust emissions reduction program. We project over 70 percent of our Scope 1 and Scope 2 emission reductions will be met through internal investments in technological innovations and operational optimization. We have invested approximately $12 million to prototype and deploy electrified components into the production process, convert pneumatic gas instruments, enhance measurement technology, remove redundant equipment, and develop and draw on renewable energy sources, among other operational improvements.
The second component of this approach is creating synergistic opportunities with our upstream assets by pursuing midstream and power assets. For example, our most recent Barnet acquisition presents extensive synergies by allowing us to partner with a credible third party to certify our responsibly sourced gas (RSG) at the wellhead and have additional access to premier Gulf Coast markets. We also announced in March a collaboration with Project Canary to apply first-of-its-kind environmental assessments and monitoring programs with the goal to deliver RSG to our power plant in Temple.
The third component is looking at near-term emission reductions and projects, such as pursuing attractive near-term carbon and methane capture opportunities. We hope to fast-track our Scope 1 and 2 methane abatement on existing business and grow business to nearby operators to create and obtain third-party carbon credits.
To close the loop—and most notably as of late—is our focus on moving large-scale carbon reduction projects forward. We recently announced a partnership with EnLink in the Barnett and anticipate being amongst the first commercial secured geological sequestration projects to come online in the U.S.
Any closing thoughts on sustainability and its future?
Without action, sustainability is just a word. At BKV, it’s in our DNA—embedded in everything we do. We believe that the U.S. energy industry is best placed to lead the world in addressing climate change while providing abundant affordable energy. And we believe BKV will lead the way for our industry to do this.
Comments