Linklaters has advised 2Co Energy Limited on its acquisition of Powerfuel Power Limited and its 900MW IGCC power plant incorporating CCS technology to be located at Hatfield, in Yorkshire, UK.
Linklaters has also advised on the pre-financing element of the €180m grant from the EU’s European Energy Programme for Recovery to Powerfuel Power Limited in partnership with National Grid Carbon Limited.
The project is set to generate 900MW of low-carbon power from 2015-2016 and to capture and store up to five million tonnes per annum of CO2 under the seabed of the North Sea.
The deal, announced on 9 May 2011, reinforces Linklaters' market-leading reputation in the energy sector.
Working closely with 2Co Energy general counsel and commercial director Adrian Lumley-Smith, the Linklaters team was led by energy partner Manzer Ijaz, in London, supported by Mark Russell, Ying Fu, Tian Kai Ling, Edward Crosthwaite Eyre and others.
Manzer Ijaz, Linklaters energy partner, said:
“We are very pleased to be able to support 2Co on this ground-breaking low-carbon power project which will not only contribute towards UK’s energy security mix and meeting CO2 emissions reduction targets, but also makes provision for using CO2 for enhanced oil recovery in the North Sea.”
Chris Staples, a partner in Linklaters’ climate change practice, who also advised on the project, said:
“We are delighted to be assisting 2Co on one of the lead demonstration projects within the EU. The European CCS market is at an embryonic stage of development within a rapidly evolving and challenging political and regulatory context.”
For further information, please contact: Rupert Winlaw on +44 20 7456 3219.
