Linklaters and Nabarro selected to advise on £5bn Euro power project

Linklaters and Nabarro have been appointed to advise on one of Europe’s biggest carbon capture and storage (CCS) projects – expected to attract investment of just under £5bn.

The pair are advising 2Co Energy on the planned Don Valley Power Project in Derbyshire, where 2Co plans to build a coal gasification plant that will generate 650 megawatts of power and capture 90% of its entire CO2 output. Planning permission for the power plant has already been granted, with construction expected to start in 2013.

Linklaters and Nabarro have been jointly instructed by 2Co, with the magic circle firm advising on matters including debt finance and construction aspects of the project and Nabarro advising on CCS regulatory issues, land acquisition, planning and environmental issues.

The Linklaters team is being led by energy partner Manzer Ijaz, who is working alongside managing associate Mark Russell. Fellow energy and projects partners Jeremy Gewirtz and Charlotte Morgan also formed part of the team. The team will be advising on revenue and government financial support structures, fuel supply and logistics arrangements, as well as construction and operating arrangements.

Energy partner Chris Staples advise on carbon and environmental considerations, with managing associates Ben James and Andrew Penfold also forming part of the team.

Nabarro, meanwhile, is fielding a team under climate change and energy partner Tom Bainbridge, who is advising on the regulatory aspects of the project, with other partners involved including real estate partner Rhodri Pazzi-Axworthy, projects partner Tim Shaw and planning partner Christopher Stanwell.

2Co general counsel Adrian Lumley-Smith commented: “2012 is an exciting year for the Don Valley Power Project which stands to be one of the UK’s most strategic energy projects this decade, representing a multi-billion pound investment in national infrastructure. The project is attracting major international interest and in Linklaters and Nabarro we have found legal advisers with the world-class expertise we need to secure its future development.”

Ijaz said: “It is a very exciting prospect for the industry, demonstrating the ability of CCS technology to provide secure supplies of low-carbon electricity, while at the same time potentially unlocking significant value for UK government and industry by using sequestered CO2 to access oil reserves that might otherwise be uneconomic to recover.”