US-based energy firm BKV Corporation has formed a joint venture with Danish investment company Copenhagen Infrastructure Partners (CIP) to accelerate carbon capture, utilisation, and sequestration (CCUS) projects across the US.
The new entity, with $500m of initial funding allocated, has been established between BKV’s wholly owned subsidiary dCarbon Ventures and CIP’s Energy Transition Fund I. It will focus on designing, constructing and operating CCUS facilities. BKV will retain a 51% stake and serve as operator, while CIP will contribute up to $500m over time for a 49% interest.
Two of BKV’s existing CCUS projects, Barnett Zero in North Texas and Eagle Ford in South Texas, have been folded into the joint venture. The Barnett Zero site has already sequestered more than 200,000 tonnes of CO2 since launching in November 2023. Eagle Ford is expected to begin CO2 injection by mid-2026, subject to permitting and final agreements.
“This strategic partnership with CIP … strengthens the economics of BKV’s CCUS business while enabling the acceleration of its growth,” said Chris Kalnin, CEO of BKV. “Together, we will expand our pipeline of carbon capture, utilisation and sequestration projects.”
US CCUS market snapshot
Market size: The US CCUS market was valued at approximately $14bn in 2023 and is projected to reach $37bn by 2032, growing at a compound annual growth rate of 8%, according to Zion Market Research.
Major projects: Notable CCUS initiatives include the Petra Nova project in Texas, the Illinois Industrial Carbon Capture and Storage Project, and Archer Daniels Midland’s Decatur CCUS facility.
Policy support: Federal incentives, including the 45Q tax credit, offer up to $85 per tonne of CO2 sequestered, helping to underpin the economic case for projects. This is under review currently.
Challenges: The sector faces rising capital costs, complex permitting processes, and limited CO2 transport infrastructure, all of which can delay project timelines and increase risk.
The joint venture adds to a wave of new investments targeting hard-to-abate industrial emissions. Additional projects from BKV’s CCUS pipeline are expected to be added to the platform in the future.
