BKV Corporation and BKV-BPP Power, LLC Address GHG Emissions with Project Canary to Become First Gas to Power Net Zero Value Chain

DENVER, CO - March 3, 2022 – BKV Corporation (BKV) and BKV-BPP Power, LLC, have entered into arrangements with Project Canary to address GHG emissions across the upstream and downstream energy value chain through first-of-kind environmental assessments and monitoring programs for their respective operations with intent to deliver Responsibly Sourced Gas to the Temple I power plant.

Project Canary technology is key for this ambitious project and aims to demonstrate that net-zero solutions can be achieved through the help of continuous high-fidelity ESG data, environmental performance verification, and energy leadership.

BKV’s arrangement with Project Canary supports BKV’s journey toward becoming a verified net-zero natural gas producer. Specifically, the parties intend for Project Canary to verify BKV’s production of Responsibly Sourced Gas through Project Canary’s TrustWell environmental assessment program with continuous methane emissions monitoring units to be deployed and regularly monitored, across nearly 100 BKV pad locations in the Barnett Shale of Texas and Marcellus Shale of Pennsylvania. BKV has already begun installing continuous monitoring units at pad locations in their Marcellus Shale operating area and will be installing additional units in the Marcellus and Barnett Shale throughout 2022 and into 2023.

In addition, the parties intend to make this Responsibly Sourced Gas available to power generators, including BKV-BPP Power, LLC’s Temple I facility in Temple, Texas, benefiting the entire value chain. Specifically, BKV-BPP Power, LLC plans to work with Project Canary to assess future development of emissions monitoring for combined-cycle electric production at the Temple I while aiming to utilize Responsibly Sourced Gas for Temple I.

“We view excellence in environmental performance as essential to our success as a company, and we are eager to demonstrate meaningful progress on our path towards net-zero operations. This project provides actual emissions measurement; a critical element in validating our emissions reduction efforts and certifying our natural gas production as being responsibly sourced,” said Chris Kalnin, CEO of BKV Corporation. “We are passionate about innovating the energy industry, and this is an exciting step in our ESG journey.”

BKV and BKV-BPP Power, LLC are working to accelerate the transition towards Smarter Energy for Sustainability and both are working diligently to deliver low impact, sustainable energy to the community through operational improvements, innovative engineering designs and collaboration with companies in the energy value chain. Both BKV and BKV-BPP Power, LLC expect to commence Project Canary’s environmental assessments in 2022.

Natural gas that may be certified by Project Canary as part of this program from BKV’s operations that are not used at the Temple I power plant will be marketed as Responsibly Sourced Gas, adding to the growing availability of the differentiated product. BKV intends to evaluate and assess midstream infrastructure associated with the delivery of BKV’s production to the Temple I plant at a later date.

“Measurement and validation are the only way to achieve net-zero,” said Chris Romer, Co-Founder and CEO of Project Canary. “We’re proud to work with BKV and BKV-BPP Power on this industry-leading integrated approach to achieving net-zero across their energy value chain.”