LAWFUEL – The Law Firm Newswire – Herbert Smith has advised Hydrogen Energy, the joint venture between BP and Rio Tinto, on its entry into an agreement with the Abu Dhabi-based Mubadala Development Company to start the detailed engineering design of an industrial-scale hydrogen-fired power generation project.
The project’s hydrogen fuel would be created from natural gas to produce clean electricity. Rather than being emitted to the atmosphere, the associated carbon dioxide (CO2) would be captured and stored in geological formations, a process known as carbon capture and storage, where it could also be used for enhanced oil recovery.
If it proceeds to construction, the project aims for commercial operation in 2012 and would require total capital investment (excluding the investment in CO2 sequestration) of around US$2 billion.
The project forms part of Masdar, Abu Dhabi’s initiative to promote sustainable energy in the region. The initiative is a multi-faceted, multi-billion dollar investment in renewable and alternative energy and clean technology. This will help to explore, develop and commercialize such future energy sources.
The Herbert Smith team was led by senior associates Simon Tysoe and Jacqueline Knox, overseen by partners Andrew Newbery and John Geraghty, with support from our office in Dubai.
John Geraghty commented:
“It was a great pleasure to be able to further develop our relationship with the excellent Hydrogen Energy team, led by general counsel Adrian Lumley-Smith. Having worked on the establishment of the Hydrogen Energy joint venture last year, we were delighted to have the opportunity to assist them on this new venture. We wish Hydrogen Energy and Mubadala every success with the project.”
Neil Brimson, managing partner of our Middle East office added:
“The deal comes at a time when our Middle East practice is growing rapidly. Indeed we are due to open our Abu Dhabi office shortly. It also builds on our market-leading position in this dynamic and fast growing area of the power sector at a time of increasing focus and planned investment in clean energy across the Middle East.”
Mubadala was advised by Allen & Overy.