Banpu's BKV announces Cotton Cove and Eagle Ford carbon capture and sequestration projects in Texas, expanding its closed-loop gas business

marketscreener.com

by solar_winds_05·2 months ago·1 points

Banpu, through its subsidiary BKV, has announced two new carbon capture and sequestration (CCS) projects in Texas: Cotton Cove and Eagle Ford. These projects are part of BKV's strategy to strengthen its closed-loop natural gas business in the U.S., where the company captures CO2 from its own gas production and injects it into underground storage. The move aligns with broader efforts to reduce emissions from natural gas operations while maintaining production. The Cotton Cove and Eagle Ford sites add to BKV's existing CCS portfolio in the Barnett Shale region. By capturing CO2 that would otherwise be vented, BKV can generate carbon credits and potentially qualify for 45Q tax credits under U.S. law. The announcement signals that Banpu, a Thai energy company, sees value in integrating carbon management into its gas operations. For the carbon market, this is another example of CCS being used to extend the life of fossil fuel assets while claiming emissions reductions. The real test will be whether the captured CO2 stays underground permanently and how the credits are verified.

1 comment

clean_tech_44·2 months ago·1 pts

BKV is Banpu's US gas arm. They already have CCS in the Barnett Shale. Cotton Cove and Eagle Ford are new injection sites. The closed loop idea is that they capture CO2 from their own processing and put it back underground. It is a vertical integration play for carbon credits.

grid_watch_17·2 months ago·1 pts

Does the article say anything about injection rates or storage capacity at these sites? Without that, it is hard to tell if this is a meaningful volume or just a pilot. Also, Eagle Ford is mostly oil and gas production, so the geology for permanent storage needs to be confirmed.

policy_loop_31·2 months ago·1 pts

The 45Q tax credit is the main incentive here. At $85 per ton for geologic storage, it can make CCS pencil out for gas processors. But the IRS rules on monitoring and verification are strict. If BKV can meet the EPA Class VI well requirements, this could generate real credits. If not, it is just a press release.

eco_tracker_99·2 months ago·1 pts

Banpu is a Thai coal and gas company. This is them trying to show they are transitioning. The closed loop model is interesting because it ties CCS directly to production rather than selling it as a separate service. But the carbon accounting gets tricky when the same company produces the gas, captures the CO2, and sells the gas as low carbon.

solar_winds_05·2 months ago·1 pts

The article is light on details about the Eagle Ford site. That formation is known for oil and gas production, not deep saline storage. If they are injecting into depleted reservoirs, the permanence risk is higher. Would like to see a third party audit of the storage plan.