CMS acted as project counsel for Net Zero Teesside Power (NZT Power) project, a first-of-a-kind fully integrated gas-fired power and carbon capture project (742MW), and the Northern Endurance Partnership (NEP) project, a new pipeline network for the transportation and storage of CO2, on aspects of the development and implementation of the first of the UK’s CCUS projects to progress to this stage of development.
Both projects are scheduled to begin construction in mid-2025 and to be operational by 2028.
The Northern Endurance Partnership (NEP), a JV comprising bp, Equinor and TotalEnergies, is an ambitious network for the transportation and offshore storage of carbon governed by the newly created licencing regime (the TRI regime) brought in under the Energy Act 2023. NZT Power is the first Teesside based carbon capture project to be taken forward as part of the wider East Coast Cluster. NZT Power is a JV comprising bp and Equinor. NEP required the creation of a new regulatory regime to accommodate the structure of the project, and the creation of a new CCUS Network Code for connection of emitters to the transport and storage pipeline system, all of which CMS advised on. CMS also advised on the first “Dispatchable Power Agreement”, a private law contract providing revenue support to NZT Power.
CMS partner and Head of the CMS Energy & Climate Change, Munir Hassan, coordinated the firm’s work on both projects with CMS Energy partners Dalia Majumder-Russell and Thomas Forman leading on the firm’s work for NZT and NEP (respectively) with support from Chris McGarvey, Ed Longden, James Wright, Louise Macleod, David Rutherford, Paula Kidd, Graeme Clubley and Sam Rylance. Over the multi-year mandate, this work was supported by a large cross-practice CMS team including lawyers from the firm’s Energy & Infrastructure, Energy Disputes, Planning, Finance, Competition, Corporate and Tax teams.
Dalia Majumder-Russell said: "Getting to this point for the NEP Project and the NZT Power projects marks the many years of work across a number of teams in CMS and is a critical milestone in the development of CCUS in the UK. Having advised since the award of the first CCUS storage licence in the UK (to the Endurance store) - over 10 years ago – it is fantastic to see CMS’s energy expertise continue to drive the development of energy transition technologies across hydrogen, CCUS and renewables sectors.”
Thomas Forman said: “Advising NEP on the creation of a new regime for the regulation of CCUS transport and storage pipelines is a testament to the deep expertise of the CMS energy network practice. Together with our roles on the regulatory models for first-of-a-kind projects, price controls for network companies and energy regulatory advice across the sector, CMS combines the breadth and depth of industry knowledge needed to achieve the UK Government’s Clean Power 2030 ambition.”
