Linklaters advises Eni on the first of its kind carbon capture and storage transportation network project in the UK

Linklaters advises Eni on the first of its kind carbon capture and storage transportation network project in the UK

What is happening?

Linklaters has provided legal counsel to Eni on the Liverpool Bay Carbon Capture and Storage (CCS) project, a pivotal initiative within the UK’s HyNet industrial cluster aimed at decarbonising heavy industries in North West  England and North Wales. The project has recently achieved financial close, marking a significant milestone in its development.

Project Overview

• Objective: The Liverpool Bay CCS project seeks to capture carbon dioxide (CO2) emissions from various industrial sources and permanently store them in depleted gas reservoirs beneath the seabed in Liverpool Bay. This approach repurposes existing fossil fuel infrastructure for sustainable use.

•  Capacity: The initial phase will store up to 4.5 million tonnes of CO2 annually, with plans to increase capacity to 10 million tonnes annually by the 2030s.

• Timeline: construction is slated to commence in 2025, with operations expected to begin in 2028

Infrastructure and Development

• Pipeline Network: The project involves constructing 35 kilometres of new pipelines to transport captured CO2 from industrial sites to the storage location.

• Contractors: Eni has awarded significant contracts to companies such as Saipem for engineering and construction services and United Living Energy for pipeline installation.

Economic and Environmental Impact

• Job creation: approximately 2,000 jobs and stimulate £2 billion in supply chain investments across the region

• Decarbonisation: By capturing and storing CO2 emissions, the project will significantly contribute to the UK’s goal of achieving net zero by 2050.

Linklaters Role

Linklaters advised Eni on various aspects of the project, including regulatory compliance, development strategies, construction contracts, and financing arrangements. The legal team played a crucial role in securing the necessary economic licence and storage permit, facilitating the project's progression to the construction phase.

Trainee’s Role

• Participating in client meetings to observe discussions and regulatory planning

• Proofreading, checking cross-references, and ensuring consistency across long-form documents

• Handling transaction management tasks and liaising with other teams (e.g. real estate, tax, environment) to keep workstreams coordinated

• Conducting legal research on UK carbon capture and storage regulations, environmental permitting, and infrastructure reuse

• Reviewing and proofreading construction contracts, including EPC (engineering, procurement, construction) agreements

• Assisting in drafting schedules and ancillary documents, such as warranties or direct agreements

• Attending client calls and taking notes on track negotiations and next steps on construction or infrastructure issues

• Assisting with due diligence tasks on the borrower or assets, including company structures, permits and existing liabilities

• Preparing board resolutions or governance documents for the corporate entities involved.