UK consults on next steps for Carbon Capture and Storage

This week the UK Government launched a major consultation document regarding the UK's approach towards the regulation of carbon capture and storage (CCS) in light of the draft EU CCS Directive.

The Government also announced the four entrants who will go forward to the next round of the UK CCS funding competition, namely BP Alternative Energy International Limited, EON UK Plc, Peel Power Limited and Scottish Power Generation Limited.  The four were selected from nine original entrants who submitted pre-qualification questionnaires in March and will now enter into more detailed discussions concerning technical, commercial, contractual and financial issues with the Government.

Consultation

The consultation outlines the proposed EU CCS Directive and invites comments on the principle and application of the EU's concept of carbon capture readiness and on a number of other important aspects of the regulation of carbon dioxide storage in the UK.  The draft EU CCS Directive was published in January this year.  In addition to seeking comment on aspects of the Directive, the consultation focuses on the UK's interpretation of the draft Directive and gives would-be developers an insight into the UK Government's likely approach to implementation of the Directive.

Please click on the links below for our briefing on the key issues of:

• carbon capture readiness;

• issues for enhanced oil recovery; and

• liability and financial security.

The consultation paper can be found here.

The deadline for responses to the consultation is 22nd September 2008.

The content of this article does not constitute legal advice and should not be relied on as such. Specific advice should be sought about your specific circumstances.

Herbert Smith LLP, Gleiss Lutz and Stibbe are three independent firms which have a formal alliance.

© Herbert Smith LLP 2008