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Clifford Chance

Clifford Chance

Carbon capture, utilisation and storage (CCUS)

An emerging technology transforming the energy landscape

Carbon capture, utilisation and storage (CCUS) 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 CCUS 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 CCUS and DAC projects across the globe and are applying our market leading oil and gas, power and regulatory expertise to work together with clients to bring these important precedent transactions to market. 

Recent client highlights

  • 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.
  • 8 Rivers and Sembcorp, 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.
 
 
  • Masdar, UAE: advised Masdar on the development of a scale carbon capture, usage and storage plant in Abu Dhabi.
  • White Rose, UK: advised the lenders on Drax’s aborted CCUS project.

 
  • DOE, US: advised on tax credits and other incentives associated with CCUS in connection with planned DOE loan guarantees to such projects.
  • 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.

Energy Transition Trends 2022

There remains a narrow window of opportunity for timely action to address the climate crisis. The necessary transition from fossil fuels to low-carbon energy sources will require massive and sustained levels of investment. Clifford Chance experts explore some of the trends that will shape the energy transition.

Find out more about Energy Transition Trends 2022