CMS Achieves Milestone in UK's Carbon Capture Projects

Deal News | Dec 19, 2024 | CMS

CMS Achieves Milestone in UK's Carbon Capture Projects

In a notable achievement for carbon capture, usage, and storage (CCUS) in the UK, CMS, a leading law firm, has provided crucial counsel on two groundbreaking projects: Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP). These projects represent the UK’s first fully integrated gas-fired power and carbon capture initiative. Scheduled to begin construction in 2025 and operational by 2028, both projects aim to significantly advance the country's CCUS capabilities. NZT Power, a joint venture between bp and Equinor, is part of the East Coast Cluster initiative, focusing on carbon capture. NEP, also a joint venture with TotalEnergies as a partner, involves the transportation and offshore storage of carbon dioxide and is governed by the new TRI regime under the Energy Act 2023. CMS's role encompassed advising on the regulatory framework, structuring the project to comply with the newly established CCUS Network Code, and facilitating private law contracts like the Dispatchable Power Agreement. The firm’s Energy & Climate Change team, led by Munir Hassan, coordinated efforts across multiple practice areas within CMS, reaffirming its expertise in energy transition technologies and regulatory regimes.

Sectors

  • Energy
  • Legal Advisory

Geography

  • United Kingdom – The projects discussed, including Net Zero Teesside Power and Northern Endurance Partnership, are based in the UK, contributing to the country's carbon capture initiatives.

Industry

  • Energy – The article discusses significant projects related to power generation and carbon capture, highlighting developments in the energy sector.
  • Legal Advisory – CMS, a major law firm, provided advisory services related to regulatory and project structuring aspects, which are critical elements of legal advisory work.

Financials

    Participants

    NameRoleTypeDescription
    CMSLegal AdvisorCompanyCMS is a law firm providing regulatory and project structuring advice for the UK’s carbon capture projects.
    Net Zero Teesside Power (NZT Power)Target CompanyCompanyNZT Power is a joint venture by bp and Equinor, focusing on fully integrated gas-fired power and carbon capture.
    Northern Endurance Partnership (NEP)Target CompanyCompanyNEP is a joint venture consisting of bp, Equinor, and TotalEnergies, focusing on CO2 transportation and storage.
    bpJV PartnerCompanybp is a global energy company and a joint venture partner in both the NZT Power and NEP projects.
    EquinorJV PartnerCompanyEquinor is a leading energy company involved in the NZT Power and NEP joint ventures.
    TotalEnergiesJV PartnerCompanyTotalEnergies is part of the Northern Endurance Partnership, contributing to carbon transport and storage solutions.