Carbon Capture and Storage With a renewed focus on carbon capture and storage, energy companies are doubling down on innovation to reduce and capture CO2 emissions, or use such emissions by chemically turning them into saleable products or in enhanced oil recovery. Holland & Knight's Carbon Capture and Storage Team assists clients in bringing carbon capture and storage (CCS) projects to life by leveraging the firm's vast experience in the energy sector (both traditional and transitional), tax credits and renewable energy incentives. In addition, the team is supported by knowledgeable and skilled attorneys and professionals within the firm's market-leading practices in project development, project finance (including tax equity financing and U.S. Department of Energy loan financing), tax, environmental, energy regulatory, real estate, midstream pipeline, well disposal and storage; CO2 and product sales agreements; construction and federal energy policy. Holland & Knight attorneys and professionals work with developers and investors to develop and finance CCS projects, as well as navigate the regulatory issues and tax benefits in this rapidly evolving industry that are key to their commercial success. Our Carbon Capture and Storage Team's experience includes advising and handling: Internal Revenue Code (IRC) Section 45Q carbon capture, use and sequestration tax credits, including latest developments in federal and state clean tax policy and status of direct pay Financing (tax equity, debt, sale-leasebacks), intercreditor, security and equity contribution agreements, including latest deal structures required by tax equity investors Class VI well permits, including negotiating with the U.S. Environmental Protection Agency (EPA) and state regulatory authorities on the financial responsibility under such permits, as well as strategies and legislative initiatives to limit (or quantify) liability for future releases Governmental regulatory and relations, including pipeline, permitting and environmental regulations (monitoring, clean water, pollution discharge and air quality) Siting, leases and real estate issues, including pore space issues Low carbon fuel standards and other renewable energy incentives to help maximize biofuel sales and other transaction economics, including California's low carbon fuel standard CO2 purchase and sale agreements, transport agreements and storage monitoring agreements Engineering, procurement and construction (EPC) contracts Operation and maintenance agreements Analysis of public-private partnership (P3) structures to jointly develop with government carbon capture schemes Analysis of investments in forest cover as an option to develop carbon capture and carbon credits
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REPRESENTATIVE ENGAGEMENTS Assisted the State of New York and the New York Power Authority (NYPA) in issuing a Clean Coal and CCS request for proposal (RFP) and negotiated with developers for a 600 megawatt (MW) project in Western New York with underground CCS proposals; our team developed the full power purchase agreement for the state with CCS provisions Advised Hyperion Resources, as developer, on a proposed new "green refinery" in South Dakota, which would include a 300 MW integrated gasification combined cycle (IGCC) power plant and CCS Handled several proposed U.S. Department of Energy (DOE) loan-funded renewable energy projects, including CCS Representing global oil and gas company in public-private partnership (P3) project involving reforestation and carbon ownership; the project involves financing, licenses, contracts, agreements and exit points Advising on "blue" ammonia project in Louisiana, which will burn natural gas to make ammonia, and capture and sequester those emissions Advising multiple clients on carbon capture deal structuring, including tax equity and direct pay scenarios, pipeline, storage and pore space issues, DOE and government loan financing, and qualification and carbon scoring for California's low carbon fuel standard Advised a client in the negotiation to close of an engineering, procurement and construction (EPC) contract for a carbon capture facility that captures CO2 from the flue gas of a cement factory and then chemically converts the CO2 to saleable products, such as baking soda and sulfuric acid Advised a client looking at investing into a carbon capture business, including due diligence of the assets of that business Negotiating on behalf of oil company new provisions to be included into CO2 sales agreement to qualify for Internal Revenue Code (IRC) Section 45Q carbon capture credits
CONTACTS George Humphrey Partner | Houston 713.653.8818 george.humphrey@hklaw.com
Marne Sussman Partner | San Francisco 415.743.6987 marne.sussman@hklaw.com
Todd Wooten Partner | Washington, D.C. 202.469.5511 todd.wooten@hklaw.com
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