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BKV signs $800M supply contract for Texas power project backed by hyperscaler
BKVBKV Corp
A wholly owned subsidiary of BKV has entered into an equipment supply agreement with a Tier 1 supplier to purchase natural gas-fired power generation equipment, including two turbines and balance-of-plant systems, for its prospective power generation project in Texas. The aggregate contract price is approximately $800 million, which includes a credit for $80 million in previously paid reservation fees. Deliveries are scheduled between September 2028 and May 2029. Approximately 90% of the payments due by March 31, 2027, are covered by a backstop agreement with an investment-grade hyperscaler, which is also the intended off-taker for the project. BKV may terminate the contract without further payment obligations if mutually agreeable offtake arrangements are not reached by that date. BKV Corporation is an energy company focused on natural gas production and low-carbon power generation.