Carbon Capture, Sequestration, and Mitigation



Nixon Peabody’s Carbon Capture, Sequestration, and Mitigation team works with clients to develop and finance projects, infrastructure, and technology designed to reduce carbon emissions, including through the advancement of low carbon fuels, including blue hydrogen, renewable fuels and biofuels, equipment retrofits and carbon capture, utilization, and sequestration (CCUS).

Our Approach

We help our clients navigate and benefit from federal tax credit regimes, such as IRC Section 45Q, voluntary carbon credit programs, federal renewable fuel programs, U.S. Department of Energy and U.S. Department of Agriculture financing opportunities and state level initiatives, such as California’s Low Carbon Fuel Standard (LCFS). Our clients include, project developers, public power, industrials, private equity funds, tax equity investors, issuers, underwriters, and lenders.

As an early thought-leader in the CCS space, Nixon has actively participated in the dialogue relating to IRC 45Q and related IRS guidance and regulations, OCC bank regulations relating to tax credit financing, and proposed low carbon legislative initiatives. Our attorneys foster cross-industry discussions and education designed to accelerate investment in, and the transition to, CCS and other carbon mitigation technologies and projects. As the Biden administration moves to reset the national climate agenda, Nixon attorneys will be tracking these developments and will advise our clients of new opportunities, required operational changes to their businesses, and shifts in corporate ESG and climate-related disclosure.

Thought Leadership

NP Comment Letter to IRS 8/3/2020

Webinars and Conferences

  • Carbon Capture and Energy: Everything’s Bigger in Texas
    Recording
  • The Role of Debt in the Carbon Capture and Sequestration (CCS) Capital Stack
    Recording | Materials
  • Insurance Solutions for 45Q Carbon Capture Projects
    Recording | Materials
  • Financing Carbon Capture Technologies; IRC 45Q Monetization Strategies
    Recording | Materials

Publications

Our team has also been quoted in Law360, S&P Global, Power Finance & Risk, and Inframation.

Representative CCS, Carbon Mitigation, and Renewable Fuels Experience

  • Representation of OGCI Climate Investments Holdings LLP in connection with its acquisition of $10 million of Series C Convertible Preferred Stock in a private placement (PIPE) issued by NextDecade, the developer of a 27 mtpa LNG export facility in South Texas along with one of the largest carbon capture and storage projects in North America. The Rio Grande LNG facility is expected to be the largest and greenest U.S. LNG export solution linking Permian Basin and Eagle Ford Shale natural gas to the global LNG market. Next Decade plans to capture and permanently store more than 5 million tonnes of carbon dioxide per year representing over 90% of its emissions, making it one of North America’s largest US CCS projects in development.
  • Counsel to Fortune 100 industrial company in connection with development of projects designed to benefit from IRC 45Q tax credits
  • Counsel to OGCI Climate Investments in connection with its investments in certain carbon capture and sequestration projects and methane reduction projects
  • Counsel to leading national biogas developer
  • Counsel to leading fund trading environmental credits
  • Disclosure counsel to the Power Authority of the State of New York on The Bond Buyer’s 2020 Northeast Deal of the Year, which was the largest public power green bond transaction of all time
  • Disclosure counsel to the Los Angeles County Metropolitan Transportation Authority on The Bond Buyer’s 2019 ESG/Green Financing Deal of the Year, which was awarded for its $545 million offering Proposition C sales tax revenue bonds
  • Bond and disclosure counsel to an irrigation district, which operates generation, transmission, and distribution of electric assets, on a bond series which were designated as “Green Bonds” as the proceeds were used to finance the purchase of a photovoltaic renewable energy project

Occidental CEO calls on big banks to invest in carbon capture, utilization space

S&P Global | March 22, 2021

This article quotes Energy and Infrastructure Projects practice team co-leader and New York City partner Ellen Friedman on how major banking institutions are pursuing carbon capture investment structures while mitigating sectorial risks, and also how investors are seeking further guidance and clarity from the IRS.

OCC rule misaligned with some tax equity safe harbors

Law360 | March 08, 2021

This contributed article, which examines the OCC’s finalized rule governing national banks’ ability to participate in equity-based finance structures involving tax credits, was authored by Project Finance & Public Finance partner Ellen Friedman and Global Finance senior counsel Larry Fruchtman, both in New York City; Community Development Finance partner Forrest Milder in Boston; and Community Development Finance partners Michael Goldman and Shariff Barakat, both in Washington, DC.

Contacts

Ellen S. Friedman

Partner
Co-leader, Energy and Infrastructure Projects Team

efriedman@nixonpeabody.com

Phone: 212-940-3053

  • National Tier 1 in Energy Law by U.S. News – Best Lawyers 2021
  • Metro Tier 1 in Energy Law—New York City, Rochester, and Washington, DC, by U.S. News – Best Lawyers 2021
  • 1st Green Bond Counsel, 2nd Disclosure Counsel, 4th Underwriter’s Counsel by Thomson Reuters YE 2020
  • Recognized by Chambers USA: America’s Leading Lawyers for Business for Energy. Our Energy practice has been consistently ranked by Chambers USA for over 15 years.
  • Recognized among the top law firms by the BTI Power Rankings 2016 report for the highest level of relationship strength with energy clients.
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