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CARBON CAPTURE

Carbon Capture is Big Business for Law Firms

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The Growing Business of Carbon Capture

Carbon capture, utilization, and storage (CCUS) have become a prominent factor in reducing emissions globally. CCUS technologies capture CO2 at sources like industrial facilities and power plants or remove it from the atmosphere. The captured CO2 is then stored offshore or underground or used to enhance products like concrete. Companies worldwide, including some of the most prominent names in the energy industry, are committing to aggressive targets for net zero emissions that rely on CCUS technology. These companies invest billions of dollars in their CCUS efforts and will need skilled legal guidance to navigate this complex new terrain.

Carbon Capture Brings More Legal Work

The path for any developing technology or industry is fraught with legal concerns – both predictable and unexpected. CCUS is no exception. Carbon capture developers, investors, and off-takers face complex business and legal issues. Law firms with clients in the oil & gas, chemical, industrial, manufacturing, power generation, gas transportation, or processing industries will likely see increased requests for guidance around CCUS matters. Savvy law firms are responding by launching or building their Energy or Environmental Practice Groups to include CCUS specialists.

Take A Multi-Disciplinary Approach

No single attorney can handle the scope of work involved in the CCUS space. From tax and governance matters to contract and patent concerns, a law firm needs a skilled team of attorneys to offer a collaborative approach. Clients need legal advice on everything from carbon credit trading, contracts, permitting, and real estate issues to financing and construction. A multi-disciplinary approach could include attorneys in the following areas of expertise: 
 
Policy and Regulation
Local, national, and international policies on carbon capture are constantly evolving and sometimes at odds with each other. Companies depend on legal counsel to keep their CCUS projects compliant with the latest regulations. Law firms can assist with the following:
● Developing ESG strategies related to net zero emission 
● Navigating carbon offset credits and emissions accounting
● Advising on federal and state carbon capture incentives
● Adhering to federal and state environmental regulations
● Guidance on environmental impact analysis, permitting, and compliance
● Monetizing carbon capture tax credits (45Q of the Internal Revenue Code)
 
Contracts & Agreements
Carbon Capture contracts must be written to protect against the “what if’s” and the unknowns in this burgeoning industry. Because the industry is so new, there are no standard contracts as there are in real estate or employment. CCUS-related contracts include:
● Contracts involving carbon sequestration and utilization
● CO2 purchase and sale agreements
● CO2 transport agreements and storage monitoring agreements
● Engineering, procurement, and construction (EPC) contracts
 
Project Finance
CCUS projects differ from typical clean energy deals such as wind and solar. Because of risk factors, there are unique lending and investing issues. Sophisticated guidance and innovative finance structures are critical to getting CCUS projects. 
● Financing  – tax equity, debt, sale-leasebacks
● Intercreditor, security, and equity contribution agreements
● Public-private investment initiatives
 
Permitting 
Geological storage of CO2 in the United States is regulated under the Safe Drinking Water Act and the Underground Injection Control (UIC) Program. There are minimum requirements for permitting, operating, and decommissioning CO2 storage projects, but many issues are left to individual states to regulate directly. Navigating this web of national and state regulations requires knowledgeable and experienced legal advisors who can assist with permitting.
● Compliance and permitting under the Safe Drinking Water Act’s Underground Injection Control (UIC) program.
● Advice on federal and state regulatory matters relating to carbon sequestration
● Securing pore space rights
 
IP Protection 
CCUS patent filings have steadily increased in recent years. Several technologies are currently in use, with many more in development by large companies, entrepreneurs, and scientists. The potential for disruptive technologies to emerge from this arena is very high. CCUS innovators will need legal assistance to protect their intellectual property.
● Domestic and international patent procurement
● Patent litigation
 
Government Relations
With the vast amounts of money, resources, and effort directed at CCUS projects, a shift in policy could be beneficial or catastrophic to the CCUS industry. Companies in the CCUS industry need more than just transactional and litigation work. They often turn to their law firms to protect their interests at the state and federal levels by: 
● Developing advocacy strategies and messaging
● Drafting legislation and analyzing proposed rules

Partner With Collier Legal to Strengthen Your Carbon Capture Focus

If your firm is looking for CCUS-experienced candidates to strengthen your Energy or Environmental Practice Groups, Collier Legal Search can help. We’ll connect you with legal professionals with experience in a wide range of CCUS matters so you can proactively address issues for your clients. As a team we have over 100 years legal recruiting experience and can immediately support your strategic growth plan. Contact our professionals today with any questions about our placement services.

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