Nabarro has secured a role advising 2Co Energy on one of the most advanced carbon capture and storage (CCS) projects in Europe, expected to attract investment of almost £5 billion.

The Don Valley Power Project (DVPP) at Stainforth in Derbyshire, acquired by 2Co Energy in May 2011, plans to build a coal gasification plant which will generate 650 megawatts of power and will capture 90% of its entire CO2 output (up to five million tonnes a year). 

It is the only UK project to win funding (€180 million) under the European Energy Programme for Recovery (EEPR). Planning permission for the power plant has already been granted and it is well placed to start construction in 2013. 

2Co Energy proposes to inject this captured CO2 into proven secure oil fields where it can tap reserves of oil that would otherwise be unrecoverable and be stored safely and permanently in the oil fields. The incremental oil production will not only substantially offset the costs of carbon capture technology, but will generate several billion pounds in valuable oil production tax revenue for HM Treasury. It will also extend the life of North Sea oil fields by up to 20 years and defer substantial costs to UK government from its shared responsibility for decommissioning oil fields. 

The Nabarro team is being led by climate change and energy partner, Tom Bainbridge, on the CCS regulatory aspects and includes partners from a wide range of practice areas recognised as being particular centres of excellence within the firm. 

These include real estate partner Rhodri Pazzi-Axworthy on land acquisition issues, project partner Tim Shaw on coal issues, planning partner Christopher Stanwell on planning/consenting issues and environment partner Clare Deanesly on environmental issues. 

Tom Bainbridge, partner at Nabarro, said: 

“We are all excited to have successfully won the pitch to work with 2Co Energy on one of the most important carbon capture projects in Europe. This type of work shows Nabarro at its best. The range of expertise we can bring to bear on large energy projects is significant and it’s always good to be involved in schemes which benefit the UK economy, jobs and the environment.” 

Adrian Lumley-Smith, Commercial Director and General Counsel, 2Co Energy Ltd, said: 

“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.” 

Linklaters is also advising 2Co Energy on the Don Valley Power Project.