BKV Corporation has entered into a definitive equipment supply contract for a prospective power generation project in Texas. According to the filing dated October 2, 2026, a wholly owned subsidiary of the company executed the agreement with a Tier 1 supplier.
The contract covers the purchase of natural gas-fired power generation equipment, including two turbines and balance of plant equipment. The aggregate purchase price is approximately $800.0 million. The supplier is scheduled to deliver this equipment between September 2028 and May 2029. BKV has already paid $80.0 million in reservation fees, which will be credited against the contract price.
Under the terms of the agreement, the remaining contract price is payable in installments from October 2026 through December 2028. Approximately $200.0 million of the contract price is due on or before March 31, 2027. BKV has secured a backstop agreement with a leading investment-grade hyperscaler to cover approximately 90% of the payments due by that date. The hyperscaler is also named as the intended offtaker for the project.
The filing notes that BKV has the right to terminate the supply contract for convenience if mutually agreeable offtake arrangements are not reached with the hyperscaler by March 31, 2027. The company stated that a copy of the full contract will be filed as an exhibit to its Annual Report on Form 10-K for the fiscal year ending December 31, 2026.
