Press Release
24 January 2008
McGrigors advise Hydrogen Energy on US$2 billion decarbonised fuel joint venture in Abu Dhabi
UK law firm, McGrigors LLP, has been advising Hydrogen Energy International Limited (Hydrogen Energy), a joint venture between BP and Rio Tinto, in relation to the detailed engineering and design of a proposed decarbonised fuel operation in Abu Dhabi prior to the completion of an agreement between Hydrogen Energy and the Abu Dhabi based Mubadala Development Company to consider the development of the project. If it proceeds to construction, the total capital investment for the project will be in the order of US$2 billion.
The project would be one of the worlds first industrial scale projects, and the first in the Middle East to generate electricity using hydrogen manufactured from natural gas. Rather than being emitted into the atmosphere, the CO2 produced as part of the process would be captured and stored in geological formations, a process known as carbon capture and storage. Such geological formations could include existing oil fields where the CO2 would improve recovery or enable previously unrecoverable oil to be produced. The full deployment of this technology could boost Abu Dhabi oil production and forms part of Abu Dhabi's Masdar’s Initiative to promote sustainable energy.
Adrian Lumley-Smith, General Counsel for Hydrogen Energy said, “This is one of a number of international hydrogen power projects which we are involved with. We are delighted with the advice that we have received from McGrigors. Their support has been critical at this early stage of the project.”
The instruction follows a pitch led by London based client partner, Allan Reason. The project team was led by partners Gareth Parry and Stuart Nash. The instruction by Hydrogen Energy sits alongside other pioneering renewable energy projects that McGrigors is currently acting on such as advising Wavegen in securing its most recent £5 million funding round to further develop and commercialise its pioneering wave power technology and advising Lewis Windpower Limited, the joint venture company established by British Energy and AMEC on the development of a 600MW wind farm on the Isle of Lewis.
Commenting on the appointment, Stuart Nash said, “A significant challenge facing the global energy industry is how to meet growing demand while managing emissions of carbon dioxide. Carbon Capture & Storage (CCS) systems present a solution and it is very exciting for us to be involved in the preliminary stage of such a landmark project. We have undertaken a lot of work in the renewables and sustainable energy sector and this latest project reaffirms our position as a leading law firm in this area which is a market with significant growth opportunities and potential.”
For further information please contact:
Louisa Hollins
Financial Dynamics
Telephone - +44 (0) 20 7269 7108
Email - Louisa.hollins@fd.com
Andy Peat
Financial Dynamics
Telephone - +44 (0) 20 7269 7185
Email - andy.peat@fd.com