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Clifford Chance

Clifford Chance
Carbon Capture and Storage (CCS)<br />

Carbon Capture and Storage (CCS)

An emerging technology transforming the energy landscape

Carbon capture and storage (CCS) has the potential to be employed throughout the energy system and has a critical role to play in decarbonising industrial processes which cannot reduce emissions by other means.

As well as capturing CO2 from fuel combustion and industrial processes, carbon removal technologies can also extract CO2 directly from the atmosphere via a process known as direct air capture (DAC). The International Energy Agency has stated that both CCS and DAC have a key role to play if we are to limit global warming to two degrees Celsius.

We are currently advising on a number of pathfinder CCS and DAC projects across the globe and are applying our oil and gas, power and regulatory expertise to work together with clients to bring these important precedent transactions to market. 

Recent client highlights

  • ExxonMobil CCS, Louisiana: advised ExxonMobil Low Carbon Solutions on its carbon capture and storage agreement with Nucor Corporation, one of North America’s largest steel producers. Under the agreement, XOM will capture, transport and store up to 800,000 metric tons per year of CO2 from Nucor’s manufacturing site in Convent, Louisiana.*
  • ExxonMobil CCS, Texas: advised ExxonMobil in connection with its carbon capture and storage agreement with Linde to transport and permanently store up to 2.2 million metric tons a year of CO₂ from Linde’s US$1.8 billion clean hydrogen plant in Beaumont, Texas, scheduled to start operating in 2025.*
  • Bayou Bend CCS hub: advised Chevron New Energies in its joint venture with Talos Low Carbon Solutions and Carbonvert to develop the Bayou Bend CCS offshore carbon capture and sequestration hub, the first and only offshore lease in the US dedicated to CO₂ sequestration.*
  • CCS project, Louisiana: advised ExxonMobil in its collaboration with CF Industries and EnLink Midstream on the largest-of-its-kind emissions-reduction project in Louisiana to capture and permanently store up to two million metrics tons of CO₂ annually.*

* Matters completed by Jonathan Castelan at a previous firm.


  • Wolf Low Carbon Solutions, Midwest US: advised a private multinational energy infrastructure company in the construction of 350-mile interstate steel trunk line that is capable of transporting 12 million tons of CO₂ per year and that will service customers looking to decarbonize across the Midwest and Ohio River Valley.*
  • Occidental Petroleum CCS, US: advised Occidental Petroleum and its Low Carbon Ventures business on a CCS project with White Energy intended to qualify under the 45Q credit program and California’s Low Carbon Fuel Standard and other matters in connection with CCS.*
  • Northern Lights CCS, North Sea: advising on the Northern Lights CCS project in northern Europe.
  • CCS hub, Saudi Arabia: advised a financial investor on early-stage discussions to establish a carbon capture and storage hub in Jubail on the east coast of Saudi Arabia.

* Matters completed by Jonathan Castelan at a previous firm.

  • Climeworks, Iceland: advised Climeworks on the financing and development of the Orca carbon dioxide Direct Air Capture project in Iceland. We also advised Partners Group on its investment in Climeworks, as co-lead in a CHF 600 million fundraising round with GIC.
  • Whitetail CCS, UK: advised 8 Rivers and Sembcorp on the financing, development, construction and operation of a CCGT power plant with carbon capture and storage in Teesside, UK.
  • CCS incentives, USA: advised the DOE on tax credits and other incentives associated with carbon capture and storage, in connection with planned DOE loan guarantees to such projects.
  • CCS project, UAE: advised Masdar on the development of a scale carbon capture, usage and storage plant in the UAE.
  • White Rose CCS, UK: advised the lenders on Drax’s aborted CCUS project.
  • Regulatory framework, UK: advised Shell on the developing regulatory framework for CCS in the UK including conducting analysis of the risks from CCS and the relationship between decommissioning and liability risks and advising on the emerging EU and UK policy regulation.

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