BKV said it has locked in an equipment supply contract for a prospective natural gas-fired power project in Texas, covering about 1,200 megawatts of generation capacity, with deliveries set to begin in September 2028.
The company also disclosed a backstop agreement with a leading investment-grade hyperscaler that is intended to be the project’s off-taker. Under that agreement, the hyperscaler will reimburse a portion of BKV’s costs tied to the equipment and related project work.
BKV said the backstop covers roughly 90% of the payments it owes through March 31, 2027, under the equipment supply contract. If BKV and the hyperscaler do not reach mutually acceptable offtake terms by that date, BKV can terminate the equipment supply contract and would have no further payment obligations.
The contract is for long-lead items including gas turbines, reheat steam turbines, reheat heat recovery steam generators, a plant distributed control system, and related auxiliary equipment and services. BKV said the arrangement supports its power growth strategy and its integrated natural gas production, power generation and carbon capture platform. As a result of these announcements, the company's shares have moved 1.19% on the market, and are now trading at a price of $22.05. For the full picture, make sure to review BKV Corp's 8-K report.
