BKV Signs 1.2 GW Gas Power Equipment Contract Backed by Hyperscaler Agreement

BKV Corporation has moved to secure long-lead-time generation equipment for a prospective natural gas-fired power project in Texas, announcing an equipment supply contract with a Tier 1 supplier for approximately 1,200 megawatts of capacity as well as a backstop agreement with a leading investment-grade hyperscaler that is also the intended off-taker for the project.

The arrangement underscores how power developers are racing to lock in turbine and related equipment slots well ahead of commercial operations as electricity demand from data centers and other large loads accelerates. For BKV, the deal supports its strategy of building a closed-loop platform that spans natural gas production, power generation and carbon capture, a model the company says is designed to meet growing baseload power demand while advancing lower-carbon energy solutions.

Under the equipment supply contract, the supplier will provide roughly 1,200 megawatts of power generation equipment, with deliveries beginning in September 2028. The procurement covers certain long-lead-time items including gas turbines, reheat steam turbines, reheat heat recovery steam generators and a plant distributed control system, along with related auxiliary equipment and services.

The backstop agreement with the investment-grade hyperscaler covers approximately 90% of the payments owed by BKV through March 31, 2027 under the equipment supply contract. If BKV and the hyperscaler have not reached mutually agreeable offtake arrangements by that date, BKV may terminate the equipment supply contract at such time and have no further payment obligations thereunder.

“Securing long-lead-time generation equipment is an important step in advancing power projects on the scale and timelines customers require and is consistent with our disciplined approach to capital deployment,” said Chris Kalnin, Chief Executive Officer of BKV Corporation.

The agreement highlights the increasingly intertwined relationship between hyperscale data center operators and power producers, as technology companies seek dedicated generation capacity to support artificial intelligence and cloud workloads. By securing a backstop from an investment-grade counterparty, BKV reduces the financial risk of ordering equipment before finalizing offtake terms, while the hyperscaler gains a pathway to secure long-term power supply.

BKV, headquartered in Denver, Colorado, describes itself as the largest natural gas producer by gross operated volume in the Barnett Shale. The company is expanding an end-to-end value chain that leverages upstream production, midstream infrastructure, natural gas-fired power generation and carbon capture, utilization and storage.