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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.

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Perspective December 1, 2022

Incentivising Investment in European Renewable Hydrogen Production

The high production costs of renewable hydrogen (RH2) limit its ability to compete with alternative non-renewable fuels and technologies. This is exacerbated by a number of market failures (including failure of carbon pricing mechanisms to impose adequate price signals on more emissions-intensive production processes and unwillingness of some offtakers to commit to long-term purchases of RH2 due to a perception that prices will fall). As a result, there is insufficient investment in European RH2 production to allow the EU to achieve the targets set out in the Fit for 55 package and REPowerEU.

Perspective November 17, 2022

Maximizing Opportunities in Clean Hydrogen and Carbon Capture Under the US Inflation Reduction Act

Shearman & Sterling hosted the webinar Maximizing Opportunities in Clean Hydrogen and Carbon Capture Under the U.S. Inflation Reduction Act on November 17, 2022.

Perspective October 31, 2022

Joining the Clean Hydrogen Movement: Singapore’s National Hydrogen Strategy

On October 25, 2022, Singapore’s Ministry of Trade and Industry published Singapore’s National Hydrogen Strategy (the “Strategy”). The Strategy recognizes the potential of low-carbon hydrogen as a broad-based decarbonization tool and the economic opportunity of positioning Singapore as a regional hub for hydrogen trade. This article focuses on the key aspects of the Strategy and potential challenges to its implementation.

Perspective October 26, 2022

Facilitating Clean Hydrogen in the US: The Draft Clean Hydrogen Production Standard

The U.S. Department of Energy (DOE) has now published draft guidance for a Clean Hydrogen Production Standard (CHPS). The draft CHPS also includes a questionnaire seeking feedback from hydrogen industry stakeholders by November 14, 2022, prior to the publication of a final CHPS. This article outlines the key features of the CHPS and the next steps in the process for a more detailed definition of “clean hydrogen” in the U.S.

Perspective October 25, 2022

Dan Feldman and Gabriel Salinas Share Their Outlook on Green Hydrogen in Latin America

Energy Innovation Team Leader, Dan Feldman, and Private Equity and Project Development & Finance counsel, Gabriel Salinas were quoted in BNamericas sharing their outlook on Latin America’s green hydrogen industry, and on how ESG, regulation and geopolitics play a key role in the future of the hydrogen market.

Perspective September 21, 2022

LatAm H2: The Growing Importance of Low-Carbon Hydrogen in Latin America

Partners Dan Feldman, Omar Samji, Roberta Berliner Cherman and counsel Gabriel Salinas have published a report on the Growing Importance of Low-Carbon Hydrogen in Latin America.

Perspective September 15, 2022

A Step Towards Removing the Red-Tape For Europe’s Green Hydrogen Sector

On September 14, 2022, the European Parliament adopted its proposed amendments to the Renewable Energy Directive (Recast) 2018 (RED II). Amongst other things, this text would make the requirements for the production of renewable fuels of non-biological origin—which includes green hydrogen, green ammonia and other e-fuels—more lenient than those proposed by the European Commission in its draft Delegated Act, published in May 2022.

Event September 15, 2022

Rice Alliance for Technology and Entrepreneurship 19th Annual Energy Technology Venture Forum

Shearman & Sterling is a proud sponsor of The Rice Alliance for Technology and Entrepreneurship’s 19th Annual Energy Tech Venture Forum, the premier energy tech venture capital conference held in Houston, Texas on September 15, 2022.

Perspective August 29, 2022

After the Inflation Reduction Act: Permitting Reforms to Expedite Energy Infrastructure Projects

With the Inflation Reduction Act (IRA) now signed into law, attention is shifting to the next potential area for energy reform: permitting. Senator Manchin has outlined his priorities for energy permitting reform legislation, which could be voted on by the end of September.

Perspective August 22, 2022

Why the US Inflation Reduction Act is an Important Step in the Transition to Clean Energy

Read “Why the US Inflation Reduction Act is an Important Step in the Transition to Clean Energy.”

Perspective August 12, 2022

Inflation Reduction Act: Key Green and Blue Hydrogen and CCUS Provisions

The House U.S. Congress has passed, as of today, the Inflation Reduction Act (“IRA” or the “Act”), which is expected to be signed into law by President Joe Biden very soon. The IRA is one of the biggest investments in clean energy in history and a major step towards reducing the United States’ greenhouse gas emissions.

Perspective July 25, 2022

The Bright Spots in a Complicated ESG Framework

Read “The Bright Spots in a Complicated ESG Framework.”

News July 20, 2022

Chevron Technology Ventures’ Investment in TAE Technologies

Shearman & Sterling advised Chevron Technology Ventures in its Series G-2 investment, alongside Google, Reimagined Ventures, Sumitomo Corporation of Americas, and TIFF Investment Management, in nuclear fusion company TAE Technologies.

Perspective July 14, 2022

Trust, but Verify: The Recipe for A Global Carbon Credit Trading System

Industries which cannot easily decarbonize would love to be able to claim reductions in net greenhouse gas emissions by “offsetting”–creating or buying carbon credits. For carbon credit offsetting to truly have a role in decarbonization, there needs to be a robust and widely internationally accepted verification mechanism which takes account of the holistic impact of offsetting activities and a market in which to bring the various industry players together. In this article, our experienced team outlines some key initiatives in developing a global carbon credit trading system.

Perspective July 7, 2022

Basel Committee Announces Principles for the Effective Management and Supervision of Climate-Related Financial Risks

The Basel Committee on Banking Supervision has published a set of principles on the effective management and supervision of climate-related financial risks at internationally active banks, which it said should be implemented by member jurisdictions “as soon as possible.” The principles cover corporate governance, internal controls, risk assessment, and management and reporting. As a global standard-setting body, the Basel Committee does not issue rules or regulations, but the release is important in that it is the latest and broadest articulation of what global banking regulators should be doing in this area.

Perspective June 21, 2022

UK Introduces Energy Profits Levy on ‘Extraordinary Profits’ of Oil and Gas Companies

The U.K. Government announced on May 26, 2022 its intention to introduce with immediate effect a temporary Energy Profits Levy (the “Levy”), an additional U.K. Corporation Tax charge at a rate of 25% on the profits of oil and gas companies earned from oil and gas extraction in the U.K. and the U.K. Continental Shelf.

News June 21, 2022

Preem’s €340 Million Green Bond Offering

Shearman & Sterling represented the initial purchasers in connection with Preem’s €340 million offering of 12.000% senior notes due 2027 by Preem Holding AB (publ). The offering, which was conducted pursuant to Rule 144A and Regulation S under the U.S. Securities Act, closed on June 21, 2022. Shearman & Sterling also advised the banks in connection with the company’s new intercreditor agreement.

Event June 14-15, 2022

Global Energy Transition 2022

Shearman & Sterling is delighted to be an event sponsor for Reuter’s “Global Energy Transition 2022” on June 14–15, 2022, in New York. #globalenergytransition2022
 

Perspective May 24, 2022

Infrastructure Bottlenecks Loom for Green Hydrogen Imports in Europe

Obviously, interest in international trade of hydrogen is rising rapidly. New announcements of credible major export initiatives are occurring frequently. But there remain doubts about the rate of development of the infrastructure needed for importing hydrogen at scale, whether as hydrogen or via carriers such as ammonia.

Event May 11, 2022

Global Energy Summit: Accelerating Action on Energy Security and Energy Transition

Shearman & Sterling has partnered with Global Success Partnership to present the Global Energy Summit: Accelerating Action on Energy Security and Energy Transition on May 11, 2022 in Morocco. Partners Ben Shorten and James Webber and counsel Samuel Ogunlaja each moderated insightful panels during the summit.

Perspective May 09, 2022

Developing an Energy Transition-Conscious Legal Roadmap for the Chemical Industry

The chemical industry is the largest industrial energy consumer worldwide. With a total gross value addition to the global economy of $5.7 trillion annually, equivalent to 7% of global GDP, the chemical industry is an integral part of the global economic landscape, permeating nearly every goods-producing sector while supporting 120 million workers worldwide.

Perspective April 26, 2022

Mexico Nationalizes Lithium Mining

Mexico’s legislature passed a bill authorizing the nationalization of lithium mining and granting the right to mine lithium to a newly-created state entity. This is the latest in a series of measures intended to assert state control over the natural resource sector.

Perspective April 1, 2022

Russia’s Invasion of Ukraine: Impact on European Energy Markets and Disputes

This note addresses both the short- and longer-term impacts of Russia’s invasion of Ukraine on Europe’s energy markets, as well as some of the potential areas for dispute and steps that industry players can take to protect themselves.

Perspective March 31, 2022

SEC Proposes Sweeping New Climate-Related Disclosure Framework

After much anticipation, on March 21, 2022, the Securities and Exchange Commission released its new proposed climate-related disclosure framework, a sweeping overhaul of the current, materiality-based climate change disclosure requirements that would substantially expand the reporting obligations for public companies.

News March 2, 2022

Aemetis $100 Million Revolving Credit Facilities

Shearman & Sterling advised certain subsidiaries of Aemetis, Inc., as borrowers, on an up to $100 million financing agented by Third Eye Capital, consisting of an up to $50 million revolving credit facility to finance projects that reduce, capture, use or sequester carbon with the objective of reducing carbon dioxide emissions and an up to $50 million revolving credit facility for working capital purposes.

News January 20, 2022

Chevron Technology Ventures’ Investment in Mobilus Labs

Shearman & Sterling advised Chevron Technology Ventures in its investment in Mobilus Labs. Chevron Technology Ventures led a consortium of investors; proceeds will be used to expand deployment of the Mobilus Voice Communications Platform internationally, with a focus on the United States and Europe in the energy, construction, chemical and manufacturing sectors.

Event January 17-19, 2022

World Future Energy Summit: Solar & Clean Energy Forum

Shearman & Sterling is pleased to support the 2022 Solar & Clean Energy Forum in Abu Dhabi, organized by World Future Energy Summit. On January 18, partner and leader of the firm’s Energy Innovation and Global Hydrogen Industry Teams Dan Feldman will moderate the ‘Green Hydrogen Manufacture’ panel.

Perspective January 18, 2022

Applying the Midstream Model to Carbon Capture Projects

Beyond tax credits, the energy industry is increasingly adopting carbon-management strategies amid pressures from stakeholders.

Perspective January 06, 2022

Committing to a Greener Future: Indonesia Embraces the Use of Carbon Economic Value

On October 29, 2021, shortly before the 2021 United Nations Climate Change Conference, Indonesia issued Presidential Regulation No. 98 of 2021 on the Implementation of Carbon Economic Value to Achieve Nationally Determined Contribution Targets and Control over Greenhouse Gas Emissions in Relation to National Development. The Regulation builds on Indonesia’s ratification of the Paris Agreement, under which Indonesia expressed its hope to better manage the impact of climate change and stated its commitment to reduce greenhouse gas emissions and to achieve the nationally determined contribution.

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.

News December 06, 2021

Elysian Carbon Management Secures Initial $350 Million Capital Commitment from EnCap Flatrock Midstream

Shearman & Sterling advised EnCap Flatrock Midstream in its initial capital commitment of $350 million in Elysian Carbon Management. Elysian provides integrated end-to-end carbon capture and storage solutions to owners of industrial and power facilities seeking to transition to low carbon products and address environmental, social and governance goals through the reduction of emissions.

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.

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.

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.

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 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.

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 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.

News September 13, 2021

Chevron Technology Ventures’ Investment in GR3N

Shearman & Sterling advised Chevron Technology Ventures in its investment in the Series B round of financing of Gr3n, a Swiss recycling company. Chevron Technology Ventures joins a consortium of investors.

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

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 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

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 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.

Perspective January 18, 2021

Why Policy-Makers Need a Climate Toolbox, Not a Silver Bullet

Read “Why Policy-Makers Need a Climate Toolbox, Not a Silver Bullet.”

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.