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Understanding Energy Innovation

Shearman & Sterling’s Energy Innovation team represents energy companies, investors, financial institutions, developers, governments, offtakers and technology suppliers on cutting edge projects and commercial arrangements involving hydrogen, carbon capture, usage and sequestration (CCUS), energy storage and green industry. We are advising on the world’s highest-profile mandates. Chambers Global and other industry benchmarks rank us as one of the leading Energy & Projects firms in the world.

INSIGHTS POSTS

Highlights

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  • Event
    December 08 - 10, 2021

    2nd Asia-Pacific Hydrogen Summit 2021

    Shearman & Sterling is delighted to sponsor the 2nd Asia-Pacific Hydrogen Summit 2021, organized by the Sustainable Energy Council. Partner Jean-Louis Neves Mandelli was interviewed by the organizer to discuss why Shearman & Sterling became interested in hydrogen projects globally, comment on prevailing market trends, and share his forecasts for its future.

  • Event
    December 07 - 08, 2021

    Connecting Green Hydrogen APAC 2021 

    Shearman & Sterling is delighted to sponsor Connecting Green Hydrogen Asia-Pacific 2021, which will provide a platform for more than 600 regional thought leaders in both public and private sectors to collaborate on critical issues and opportunities in harnessing hydrogen for future.

  • Perspective
    November 29, 2021

    Hydrogen a Key Focus of New German Government’s Coalition Agreement

    The new federal government has presented ambitious framework conditions for decarbonizing the German economy through hydrogen, aiming to position Germany at the center of a global hydrogen economy. German industry expects further detail in the next months.


  • Perspective
    November 18, 2021

    COP26 Briefing List

    This briefing brings together, in a single easy-to-navigate directory, the statements, declarations and announcements made by governments and organizations during COP26. COP26 was the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change which took place in Glasgow, U.K., during November 2021. 197 countries were represented. At the same time, the CMP meeting of 192 countries party to the Kyoto Protocol and the CMA meeting of 196 countries party to the Paris Agreement were held. For the first time, the COP agreed to action on phasing down fossil fuels. The Paris Rulebook for delivering the Paris Agreement was also completed after six years of discussions, including the Article 6 framework for a global carbon market.


  • Perspective
    November 11, 2021

    Dispute Resolution Under the CBAM

     

    On July 14, 2021, the European Commission published its proposal for a Carbon Border Adjustment Mechanism (CBAM). To allow businesses to adjust, the CBAM will be phased in from 2023 and only become fully operational in 2026.



  • News
    November 9, 2021

    Supporting Innovative Responses to Climate Change

    Shearman & Sterling is committed to doing our part to confront climate change. In a major pro bono effort, Shearman & Sterling recently assisted The Nature Conservancy, one of the world’s leading conservation organizations, in its innovative transaction under the “Blue Bonds for Ocean Conservation” program with the Government of Belize to reduce its debt and provide funding for marine conservation. For more details, see: Shearman & Sterling Partners with The Nature Conservancy and the Government of Belize to Conserve Ocean Through Debt Conversion.

  • Perspective
    November 9, 2021

    The Rise of Carbon Offsetting

     

    In recent times, carbon-intensive sectors in many parts of the world have been subject to mandatory programs that obligate reporting of greenhouse gas emissions, set thresholds for permitted emissions and enforce compliance using instruments such as carbon taxes or cap-and-trade.
     

  • News
    November 8, 2021

    EGE Haina’s $300 Million Sustainability Linked Notes Offering

    Shearman & Sterling represented Empresa Generadora de Electricidad Haina, (EGE Haina) in connection with the issuance of $300 million 5.625 percent sustainability linked senior notes due 2028. The proceeds of the offering shall be used to repay all or part of the outstanding principal amount of multiple series of notes issued in the Dominican Republic’s local capital markets as well as to make a contribution to a special dividend to EGE Haina’s shareholders.

  • Perspective
    November 8, 2021

    Increasing Assertiveness of EU Courts in the Energy Sector

    There have been a large number of energy sector disputes within the EU recently. For example, on September 16, 2021, the fiftieth investment treaty claim was filed with the International Centre for Settlement of Investment Disputes regarding Spain’s renewable energy reforms.

  • Perspective
    November 4, 2021

    Energy & Infrastructure Insight—Winter 2021—Issue 5

     

    We are delighted to bring you the fifth edition of our Energy & Infrastructure Insight, providing expert information and analysis of the current issues facing the energy and infrastructure sectors across the globe.


  • Perspective
    November 3, 2021

    How Hydrogen Figures Into Europe’s Energy Transition Policy

     

    Partners Dan Feldman and Lachlan Poustie, of counsel Patrick Wolff and associate Frederick Lazell authored an expert analysis article for Law360 about key European regulatory developments relevant to hydrogen in 2021.


  • News
    November 1, 2021

    OMERS Infrastructure Signs Agreement with Ares Management to Acquire Navisun

    Shearman & Sterling advised OMERS Infrastructure in its agreement with a fund managed by Ares Management Corporation to acquire 100 percent of Navisun LLC, an independent distributed generation solar power producer.
     

  • Perspective
    October 19, 2021

    Green Hydrogen and Ammonia in Australia: A New Commodity for the 21st Century

    Partner and leader of the firm’s Global Hydrogen Industry Team Dan Feldman joined a webinar titled “Green Hydrogen and Ammonia in Australia: A New Commodity for the 21st Century” co-hosted by Shearman & Sterling and Gilbert + Tobin. View the presentation slide deck.

  • Perspective
    October 18, 2021

    Hydrogen Economy: Roadmap of European Regulatory Developments

     

    Almost two years ago, the European Commission (EC) published its Green Deal, which mentions hydrogen only three times. Since then, hydrogen has come to the centre-stage of the EC's decarbonisation agenda. Hydrogen is integral to the Fit for 55 package and therefore the EC's vision for a decarbonised European economy. Is this, then, the beginning of the 'hydrogen decade' in Europe?

  • Event
    October 13, 2021

    PFI 2021 Financing Energy Projects In Asia

     

    Shearman & Sterling is pleased to sponsor the 2021 Financing Energy Projects in Asia Virtual Conference organized by Project Finance International (PFI). On October 13, partner Jean-Louis Neves Mandelli will join the Hydrogen Panel which will consider the commercial project financing for green hydrogen schemes and how projects can build up bankable revenue stacks for hydrogen projects.

  • Perspective
    October 12, 2021

    World Hydrogen Congress 2021: Interview With Partner Dan Feldman

     

    Between October 4-6, 2021, Shearman & Sterling sponsored the World Hydrogen Congress. During the conference, partner Dan Feldman, Leader of Shearman & Sterling’s Global Hydrogen Industry Team, was interviewed by Nadim Chaudhry of World Hydrogen Leaders. In the interview, Dan discusses the recent progress in the industry and the outlook for its future.

  • Perspective
    October 12, 2021

    Illinois Bans Fossil Fuels

     
     

    Europe has been in the forefront in passing and implementing legislation to phase out fossil fuels and reach 100 percent clean energy within the next two decades. This shift in energy resources is driven by international commitments (such as the Paris Climate Accord) and recent United Nations reports, highlighting the urgency of carbon reducing and offsetting measures. While the United States has generally lagged behind Europe in shifting away from fossil fuels, the Biden Administration has set forth a new climate strategy that includes the goal of reaching net zero emissions no later than 2050.

     

  • Event
    October 12, 2021

    Green Hydrogen and Ammonia In Australia: A New Commodity For The 21st Century

     

    Partner and leader of the firm’s Global Hydrogen Industry Team Dan Feldman will join a webinar titled “Green Hydrogen and Ammonia in Australia: A New Commodity for the 21st Century” co-hosted by Shearman & Sterling and Gilbert + Tobin on October 12.  

  • Perspective
    October 11, 2021

    Paris Arbitration Week – Hydrogen: Risk, Opportunities and Potential Disputes

    On September 21, 2021, Shearman & Sterling’s Global International Arbitration Practice Group Leader Alex Bevan moderated a webinar titled “Hydrogen: Risks, Opportunities and Potential Disputes.” The session was organized by Shearman & Sterling in the context of Paris Arbitration Week 2021.

  • Perspective
    October 07, 2021

    Hydrogen’s Present and Future In The US Energy Sector

     

    According to the International Energy Agency, hydrogen is one of the “biggest innovation opportunities” to reduce global CO2 emissions to net zero by 2050, a widely accepted global target to avert the worst effects of climate change. Because it is an energy-dense molecule that can be used in place of oil and natural gas products in many applications, but does not emit CO2 when consumed, hydrogen has the potential to become an essential sustainable fuel and feedstock in the U.S. and globally.

  • Event
    October 04 - 06, 2021

    World Hydrogen Congress

     
     

    Shearman & Sterling is delighted to sponsor the 2nd Annual World Hydrogen Congress taking place on October 4-6, 2021. This event is a platform for more than 200 thought leaders and 800 attendees to discuss the future of hydrogen.

     

  • Perspective
    September 03, 2021

    Gulf Coast Offshore Wind: Opportunities and Challenges

     

    Partners Robert Freedman (New York-Project Development and Finance) and Omar Samji (Houston-Private Equity) and counsel Gabriel Salinas (Houston-Private Equity) authored an expert analysis article for Law360 about the opportunity offshore wind provides for local economic growth and job creation.

     

  • Perspective
    August 23, 2021

    Gulf Coast Offshore Wind Spurs Energy Innovation

     

    In the transition to cleaner and more secure domestic energy sources, offshore wind presents a significant opportunity for local economic growth and job creation. Notably, on June 8, 2021, the U.S. Department of the Interior (DOI) announced its intent to assess potential opportunities to advance clean energy development on the Gulf of Mexico Outer Continental Shelf. This article discusses opportunities and challenges for offshore wind in the U.S., the Biden administration’s goals, and a comparison of offshore oil & gas leases vs offshore wind leases.

  • Perspective
    August 23, 2021

    UK Hydrogen Strategy: Significant Commercial Opportunities Promised

     

    On August 17, 2021, the U.K. government published its highly-anticipated Hydrogen Strategy. The strategy outlines the U.K.’s approach to developing a thriving low-carbon hydrogen sector, re-states its ambition for 5GW of low carbon hydrogen production capacity by 2030 and outlines how the hydrogen sector will be instrumental in achieving the U.K.’s target of net zero greenhouse gas emissions by 2050. This article provides an overview of the U.K. Hydrogen Strategy and highlights some of the key commercial opportunities outlined thereunder.

  • Perspective
    August 18, 2021

    New Bipartisan Senate Infrastructure Bill Emphasizes Reauthorization, Research, Resilience And Reliability

    On August 10, a group of 19 Republican Senators joined their Democratic colleagues in approving a bill that, if passed by the House of Representatives and signed by President Biden, would provide for more than $1 trillion in improvements to the nation’s physical infrastructure.
     

  • Perspective
    July 07, 2021

    Preliminary EU CBAM proposal: both green and blue ammonia incentivized
     

    The preliminary draft CBAM proposal from the European Commission that became public last month: envisages the continuation of the “free” allowances of carbon credits to European ammonia producers up to the benchmarks under the ETS; imposes the same carbon costs on importers of ammonia as those faced by EU-based producers by requiring importers to acquire and surrender CBAM certificates for carbon emissions only to the extent that they are in excess of the benchmarks; and preserves for European “green” and “blue” ammonia producers (provided their emissions are below the benchmark) the ability to monetize their increasingly valuable “free” allowances.

  • Perspective
    July 02, 2021

    IRS Issues Revenue Ruling Providing Guidance on Carbon Capture Equipment

    On July 1, 2021, the Internal Revenue Service issued Revenue Ruling 2021-13 to clarify that a taxpayer may qualify for the carbon capture credit under section 45Q of the Internal Revenue Code of 1986, as amended, without owning every component of carbon capture equipment within a single process train.

  • Perspective
    June 30, 2021

    Energy Transition: Opportunities and Impacts on Unconventional Oil and Gas Development in the US

    The current landscape of unconventional “shale” oil and gas in the United States is filled with both opportunities and pitfalls. A confluence of events developing out of 2020 continues to impact the industry: a Russian-Saudi price war; the ongoing COVID-19 pandemic; the energy transition; and continuing ESG market concerns.

  • Perspective
    June 29, 2021

    Future Challenges to Vietnam’s Remarkably Rapid Renewable Ramp-up

    Vietnam’s Power Development Master Plan, the latest draft of which was released in February this year (PDP 8), reflects Vietnam’s commitment to prioritize renewable energy projects in its energy mix.


     

  • Perspective
    June 28, 2021

    Structuring and Financing a Green Hydrogen Project on the Back of the Anticipated Regulatory Environment in Europe

    The basic definition of green (versus grey, brown or blue) hydrogen is well known – see our article “Hydrogen: Is it the answer to clean energy?” from the Autumn 2020 edition of this publication.


     

  • Perspective
    June 23, 2021

    Update on the Central Asian Power and Renewables Energy Market

     

    The last 18 months have seen a flurry of activity in the Central Asian renewable energy sector with countries seeking to incubate the industry from a standing start. The sudden drive for clean energy has been prompted by a confluence of motivations.
     

  • Perspective
    June 23, 2021

    Preliminary CBAM Proposal: Good News For European Steel Producers?

     

    The preliminary draft CBAM proposal from the European Commission which became public earlier this month: envisages the continuation of “free” allowances of carbon credits to European steel producers up to the benchmarks under the ETS; imposes the same carbon costs on importers as those faced by EU based steel producers by requiring importers to acquire and surrender CBAM certificates for emissions in excess of the existing EU benchmark; and preserves for European “green” steel producers the ability to monetize their increasingly valuable “free” allowances.

  • Perspective
    June 23, 2021

    2021 European Hydrogen Conference
     

     

    Shearman & Sterling recently sponsored the European Hydrogen Conference 2021, focusing on how hydrogen will be integrated across the value chain through ministerial, industrial and technological collaboration.


     

  • Perspective
    June 22, 2021

    Energy & Infrastructure Insight – Summer 2021 – Issue 4


      We are excited to bring you the fourth edition of our Energy & Infrastructure Insight, providing expert information and analysis of the current issues facing the energy and infrastructure sectors across the globe.


     

  • Perspective
    June 16, 2021

    DOE Launches Energy Earthshot to Spur Low Cost, Clean Hydrogen

     

    On June 7, 2021, Secretary of Energy Jennifer M. Granholm launched the U.S. Department of Energy (DOE) Energy Earthshots initiative. This Earthshots program aims to accelerate breakthroughs in net-zero carbon technologies in the United States and around the world, while creating clean energy jobs and achieving the Biden-Harris Administration’s goal of a net-zero carbon emission economy by 2050.

  • Perspective
    June 11, 2021

    Nebraska’s New Subsurface Carbon Storage Legislation and Comparisons to Texas

    On May 24, 2021, the State of Nebraska signed into law LB650, providing precise guidance on the management of geological subsurface Carbon Dioxide (CO2) storage. While other states, including Texas, have issued legislation on this issue in the past, LB650 represents the latest attempt by a state to regulate subsurface CO2 on a comprehensive basis.

  • Perspective
    June 02, 2021

    US Senate to Consider Tax Credit Legislation Under Clean Energy for America Act

    The Clean Energy for America Act (the “CEAA” or the “bill”), which would consolidate more than 40 existing energy incentives into three emissions-based provisions that incentivize clean electricity, clean transportation, and energy efficiency was advanced by the Senate Finance Committee on May 26, 2021. The bill now moves to the full U.S. Senate for consideration and approval.

  • Perspective
    June 01, 2021

    Milieudefensie V. Shell — A Landmark Court Decision For Energy And Energy-intensive Companies

    On May 26, 2021, the Hague District Court in the Netherlands granted a claim brought by a group of Dutch NGOs and ordered global energy company Royal Dutch Shell PLC to reduce its group-wide CO2 emissions by 45 percent (net) compared to 2019 levels, by the end of 2030. Although the decision was taken under Dutch law, the court drew heavily from international treaties and ‘soft law’ in giving content to Shell’s reduction obligation. As such, the court’s reasoning could be replicated by other national courts in assessing similar claims for climate-related liability, and it therefore has implications for energy and energy-intensive companies around the world.

  • Perspective
    May 25, 2021

    IEA Roadmap Outlines Hydrogen’s Role in Reaching Net Zero by 2050

    On May 18, 2021, the International Energy Agency (IEA)—the world’s leading energy policy intergovernmental organization—released a comprehensive report, “Net Zero by 2050: A Roadmap for the Global Energy Sector” (Report). The Report outlines the IEA’s view of the steps that must be taken globally in order to meet the goal of “net zero” global greenhouse gas emissions by 2050, which is in turn required to meet countries’ commitments under the Paris Agreement to limit global warming to 1.5°C. The Report is the first of its kind focused on the global transition to net zero emissions, whilst purporting to safeguard stable and affordable energy supplies and supporting strong economic growth.


  • News
    May 17, 2021

    Masdar’s Development of Solar Power Plant in Greece

    Shearman & Sterling advised Abu Dhabi Future Energy Company (Masdar) on the development and financing of a 65 MW Solar PV Power Plant in Greece.







     


  • Perspective
    May 11, 2021

    Japan – Key Link In Hydrogen Value Chain

    Partners Etienne Gelencsér (Tokyo-Project Development & Finance), Karl Pires (Tokyo-Mergers & Acquisitions) and Jean-Louis Neves Mandelli (Singapore-Project Development & Finance) and consultant Naomi King (Tokyo-Project Development & Finance) have authored an article in Project Finance International titled “Japan – Key link in hydrogen value chain.” The article highlights the key challenges and opportunities in the development and financing of hydrogen projects and the pivotal role that Japan is expected to play in facilitating the expansion of the hydrogen value chain in the future.


  • Perspective
    April 27, 2021

    Green Hydrogen in Chile: Corfo’s International Tender to Develop Green Hydrogen Projects

    On April 20, 2021, the Corporation for the Promotion of Production (Corfo), Chile’s Economic Development Agency, released bidding guidelines for its first call to develop green hydrogen projects in the country (the “Tender”). The Tender aims to promote the production of green hydrogen as part of Chile’s Green Hydrogen Strategy to achieve carbon neutrality by 2050.

  • News
    April 08, 2021

    Masdar Solar Power Plant in Azerbaijan

     

    Shearman & Sterling advised Abu Dhabi Future Energy Company (Masdar) on the 230-MW solar power plant in the Kharadagh (Baku) and Absheron districts in the Republic of Azerbaijan.


     

  • Perspective
    March 30, 2021

    IRS Issues Final Regulations on Section 45Q Carbon Capture Credits 

    The U.S. Internal Revenue Service (IRS) and the U.S. Treasury Department (“Treasury”) have issued final regulations (T.D. 9944) (the “Final Regulations”) providing additional guidance on several aspects of the income tax credit for the capture of qualified carbon oxide (CO) under section 45Q of the Internal Revenue Code of 1986, as amended (the “Code”). By largely adopting the proposed regulations released on May 28, 2020 (REG -112339-19) (the “Proposed Regulations”), discussed in our client alert dated June 22, 2020, with certain helpful modifications, the Final Regulations aim to alleviate some of the uncertainty previously faced by developers and should attract more widespread attention and investor participation.

  • News
    December 23, 2020

    Engie’s Decarbonization Loan Facility
     

    Shearman & Sterling advised Engie Energía Chile S.A. (Engie) as New York counsel on the entry into a $125 million unsecured loan facility from the Inter-American Investment Corporation (IDB Invest) in its own capacity and in separate capacities as agent of the Inter-American Development Bank and as sub-implementing entity of the Trust Fund for the Clean Technology Fund.

  • News
    December 18, 2020

    UEP Penonomé II S.A.’s Senior Secured Notes Offering and Financing

    Shearman & Sterling advised Citigroup Global Markets Inc., as initial purchaser in connection with a Rule 144A/Reg S offering of $262,664,000 6.500 percent senior secured notes due 2038 by UEP Penonomé II, S.A., one of the largest diversified clean energy companies in Central America and the biggest unconventional renewable energy producer in Panama in terms of installed capacity.