BKV Corp to Fund 2026 Power CapEx, Raises CCS Target to 1.5M Tons
BKV Corp holds 75% ownership in Texas Temple plants, leveraging AI and data center demand, and expects to fund its strategic power CapEx from 2026 cash flows. It raised its carbon capture target to 1.5 million tons per annum by 2028 with projected $48 EBITDA/ton via partnerships like Comstock Resources.
1. Power Business Performance
BKV Corp holds a 75% majority stake in the Temple power plants in Texas, capitalizing on surging AI and data center electricity demand. This segment’s strong performance underpins the company’s near-term growth trajectory.
2. Carbon Capture Expansion
The company increased its carbon capture and storage capacity target to 1.5 million tons per annum by 2028, projecting EBITDA margins of roughly $48 per ton. This upsized goal reflects growing commercial interest and collaborations with partners such as Comstock Resources.
3. Strategic CapEx Funding
BKV plans to fund its 2026 power infrastructure investments, including transformers, power lines, and a private use network, entirely through operating cash flows. These expenditures support long-term offtake agreements and grid optimization to alleviate transmission congestion.
4. Upper Barnett Appraisal Program
This year, BKV will test one to two appraisal wells in the Upper Barnett, despite higher breakeven costs. The program aims to apply efficiencies from the Lower Barnett to validate the prospective 100-well inventory.