Carbon Capture & Storage (CCS)

Capture, transport and storage of CO2 –  will be a key component in the transition to a sustainable energy sector, and in the efforts to reach the national climate mitigation objectives it will become a competitive edge for all market operators to be at the forefront of any regulatory challenges and contract law issues in connection with Carbon Capture and Storage (”CCS”).

Legal advice generating added value to the energy sector in sustainable transition

We offer unique advice generating value to operators in the field of CCS projects in Denmark and Northern Europe through our profound regulatory understanding of the energy sector and early experience with assistance in solving some of the first issues in connection with the implementation of CCS regulation in Denmark, also drawing on our broad experience with contract law issues in energy infrastructure projects.

Our specialist lawyers advise on projects within Carbon Capture and Storage og Carbon Capture, Utilisation and Storage (CCUS) in a wide sense where thorough knowledge of the regulatory framework and experience with the technical environment are necessary for delivering optimum legal solutions.

What is CCS?

CCS is short for Carbon Capture and Storage, which means capture and storage of CO2. CCS is a well-known technological process previously used for increasing output from oil and gas production but now used for reducing CO2 emissions by underground storage of CO2.

CCS is a technological process where CO2 is separated and captured from industrial or energy-related emission sources or atmospheric air, compressed and transported by pipelines, trucks and/or ships and finally injected 1-3 km below ground for permanent storage. Analyses from GEUS (The Geological Survey of Denmark and Greenland) show that the Danish underground has geological structures ideally suited for storage of CO2 and capacity for storage of 12 to 22 billion tonnes of CO2, which corresponds to Denmark’s annual CO2 emissions multiplied by 400 to 700.

CCS can contribute to the reduction of CO2 emissions by capturing CO2 emitted from, for example, waste heat plants or cement production plants in connection with limestone heating into cement. In addition, CCS can contribute to the reduction of negative CO2 emissions of by capture and storage of CO2 from biogenic sources such as biomass or biogas or from the atmospheric air. The latter is also referred to as Direct Air Capture (”DAC”).

Denmark’s new CCS strategy 2022

On 14 December 2021, the Danish government and a broad political majority reached a political agreement on a new CCS strategy. With the CCS strategy, the stage is set for building the necessary infrastructure for capture, transport and storage of CO2 in Denmark through a number of specific initiatives aimed at ensuring the launch of the first CO2 capture plant in 2025.

In the light of the CCS strategy, the Danish development of businesses and technologies in relation to CCS is expected to be in high demand globally in the years to come.

A to Z SOLUTIONS WITHIN CCS-RELATED PROJECTES

We offer A to Z solutions within CCS-related projects, including legal advice on, for example:

• The setting up of business structures for investments, ownership agreements, etc.
• Assistance with the maturity of projects, such as CO2 capture plants
• Ensuring rights in connection with land acquisition
• Advice on environmental regulation
• Construction contracts in connection with the construction of CCS-related industrial installations
• Commercial agreements with CO2 buyers
• Transport and shipping agreements and agreements on permanent storage etc.
• Competition law analyses and cross-cutting cooperation agreements
• CCS advice in relation to reducing CO2 and achieving climate objectives, among other things in connection with EU’s taxonomy regulation
• IPR advice (intellectual property rights) in connection with new CCS technologies, such as observance of the rights of others, ensuring own rights and the conclusion of licence agreements
• Marketing advice with a focus on avoiding greenwashing

EXPERIENCE AND CASES

We have offered legal advice to, among others, a large Nordic operator in the field of production, transport, processing and storage of CO2 and advised several government operators on the implementation and understanding of Carbon Capture and Storage regulation.