A new carbon capture storage (CCS) facility of energy conglomerate Banpu Plc is taking shape in the US, following cooperation with a midstream energy company, part of a strategy to drive its business towards sustainability, says BKV Corporation, the gas production arm of Banpu.
The CCS facility is set to be located near a gas production plant at Eagle Ford Shale near the city of Freer in Texas.
BKV, which is listed on the New York Stock Exchange, plans to co-develop the CCS facility, but did not disclose the investment budget nor the name of its business partner, saying only a final investment decision has been reached.
The partnership demonstrates its commitment to reduce greenhouse gas emissions, the company said.
Financially the CCS facility is also expected to generate long-term revenue through innovative and sustainable solutions.
"We are excited about BKV's commitment to achieving the net-zero target," said Sinon Vongkusolkit, chief executive of Banpu.
The CCS facility is scheduled to start commercial operation in the first quarter of 2026 if all required permits are obtained.
BKV filed a monitoring, reporting and verification plan with the US Environmental Protection Agency for approval.
The company plans to purchase carbon dioxide emitted from the gas production plant. It will be compressed and permanently stored in nearby wells built as part of the CCS project.
It expects to capture approximately 90,000 tonnes of carbon dioxide per year.
The company also operates two CCS projects, namely Barnett Zero and Cotton Cove, near its Barnett shale field in Texas.
"The progress in CCS projects is in line with BKV's closed-loop approach," said Mr Sinon.
BKV's closed-loop scheme includes natural gas production, natural gas gathering, processing, transporting, power generating and CCS.
Banpu is allocating a budget worth US$3 billion to support its investment between 2025 and 2030.
Up to 60% of the money will go to the gas business and CCS projects.