BKV Corporation, in partnership with EnLink Midstream (NYSE:ENLC), announced the commencement of their pioneering carbon capture and sequestration (CCS) project, Barnett Zero, in the Barnett Shale region of North Texas. This initiative marks a significant step in tackling CO2 emissions from natural gas production and processing operations.
The Barnett Zero project is designed to capture CO2 waste from EnLink's Bridgeport natural gas facility and nearby operations. With the Texas Railroad Commission's approval of the Class II well and the United States Environmental Protection Agency's sanctioning of the Monitoring, Reporting and Verification Plan under Subpart RR of the Greenhouse Gas Reporting Program, the project has officially begun its CO2 injection process ahead of schedule.
The CCS plant is set to sequester around 210,000 metric tons of CO2-equivalent annually throughout its lifespan. This effort aligns with BKV's commitment to achieving net-zero Scope 1 and 2 emissions by the end of 2025, and net-zero Scope 1, 2, and 3 emissions by the early 2030s. Chris Kalnin, CEO of BKV, stressed the importance of this project in their environmental strategy, while Jesse Arenivas, CEO of EnLink Midstream, highlighted the dual benefits of emission reduction and shareholder value enhancement.
EnLink Midstream will be responsible for transporting BKV's natural gas to Bridgeport for CO2 compression before it is securely stored underground. The success at Barnett Zero is expected to serve as a model for future Class II and Class VI wells.
In addition to this milestone, BKV has disclosed plans for its second CCS endeavor named Cotton Cove. Developed alongside Banpu Power US Corporation, this upcoming project aims to commence commercial operations by the end of 2024. With an anticipated sequestration capability of approximately 45,000 metric tons of CO2 annually, Cotton Cove represents another strategic move by BKV towards a more sustainable future in energy production.
InvestingPro Insights
As EnLink Midstream (ENLC) embarks on this groundbreaking carbon capture and sequestration project, it's worth noting some key financial insights about the company. According to real-time data from InvestingPro, ENLC has a market capitalization of $5650M and a P/E ratio of 19.24 as of Q3 2023. The company's revenue for the same period stands at $7072.4M, albeit with a decline of 27.43% in the last twelve months.
InvestingPro Tips suggest that ENLC exhibits high earnings quality, with free cash flow exceeding net income, and has been consistently increasing earnings per share. These factors may be indicative of the company's financial health and ability to fund innovative projects like Barnett Zero. Moreover, despite analysts anticipating a sales decline for the current year, the company's stock has experienced a large price uptick over the last six months, and ENLC has maintained dividend payments for 10 consecutive years.
For those interested in more in-depth analysis and tips, InvestingPro offers a wealth of additional insights into ENLC's performance and potential.
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