“Hydrogen is the Swiss army knife of energy solutions: it is multipurpose, with the ability to store, transform, and transport energy while producing zero CO2 emissions.”
World Hydrogen Council 2020
As the momentum builds to drastically reduce carbon emissions, hydrogen has emerged as a critical contributor for providing abundant low-carbon energy to power a wide range of industries. Hydrogen, a versatile energy carrier, is a demonstrated fuel for transport and electricity production, and a key feedstock for industrial processes that continues to expand into new markets. Its use complements increased electrification and the expansion of renewable power. When produced using renewable energy, or in conjunction with carbon capture technologies, hydrogen can support an energy transition across the global economy in a dramatic way.
The development of hydrogen as a fuel, a power source, and a key industrial feedstock, will draw on a diverse range of complementary legal disciplines, and Baker Botts’ multidisciplinary energy teams are at the forefront of this developing industry around the world. We can support clients in all parts of the hydrogen value chain, including:
- Development of facilities and projects for hydrogen and related products (such as ammonia, LOHCs, and hydrides), including:
- Integrated and stand-alone production, transportation, distribution and storage facilities supporting various industries and uses;
- Carbon Capture, Utilization and Storage (CCUS) infrastructure supporting large-scale hydrogen production; and
- End-use facilities (including facilities supporting the automotive and transportation sectors).
- Structuring and negotiation of agreements in an evolving industry, including:
- Supply and offtake agreements (including arrangements for the supply of hydrogen and ammonia), taking into account potential carbon costs, applicable tax credits, and other market evolutions;
- Engineering, procurement, and construction arrangements for hydrogen projects and hydrogen and CCUS technologies;
- CCUS development and use arrangements (including CO2 capture, transportation, utilization, and storage in various forms) supporting hydrogen production; and
- Power purchase agreements and gas supply agreements supporting hydrogen production and use;
- Investments in hydrogen projects and related joint ventures, including tax structuring;
- Financing for companies and projects at various stages;
- Patenting and licensing of hydrogen and CCUS technologies, including:
- Fuel cells;
- Electrolyzers; and
- Solid carbon capture technologies;
- Addressing and advancing Environmental, Social, and Governance (ESG) goals and strategy; and
- Advised on environmental, health and safety regulatory issues, including:
- Permitting and compliance counseling;
- Seeking grant funding for investments in emissions-constrained urban areas; and
- Incident response and crisis management.
Full-Service Coverage for the Hydrogen Economy
Technological advances, emerging environmental policies, and a focus on sustainable investments will continue to open the doors to new investment in the hydrogen economy and will encourage the development of hydrogen projects and related facilities. Such development will involve the concerted efforts of stakeholders from the energy, technology, investment, finance, and regulatory sectors. Our team of attorneys provides a full-service approach to assisting clients with innovative and complex projects of all sizes, from small technology start-ups to global infrastructure projects.
- Our Chambers Band 1 (2020) energy transactional and project development practice assists industry players with the development and financing of capital-intensive energy projects around the world, including the structuring of partnerships and joint ventures, the financing of those projects, and the negotiation of commercial arrangements.
- Our technology and intellectual property attorneys provide full-service representation to technology companies of all sizes, including large multi-nationals, start-ups, universities, industry associations, and research consortia.
- Our corporate and mergers and acquisitions teams offer extensive and comprehensive experience across all facets of the strategic investment and private equity landscapes, including the purchase and sale of companies and assets, joint ventures and strategic alliances, tax and regulatory structuring advice, fund formation, and the integration and management of acquired companies and assets.
- Our environmental, safety and incident response team advises clients on permitting, compliance, incident response, carbon credit regimes, litigation, and implementation of decarbonization strategies and projects.
- Our tax attorneys work closely with all of our teams to provide advice on evolving federal, state, and international tax issues and incentives, including carbon tax proposals, carbon capture tax credits (Section 45Q of the Internal Revenue Code), alternative fuel vehicle tax credits, and the monetization of such tax incentives.
- Our cross-disciplinary ESG team uses subject matter and market experience to advise clients across the entire range of E, S and G, including advice on sustainability initiatives and strategy, climate risks and opportunities, ESG metrics and targets, climate resilience and scenario analyses, disclosure frameworks, preparation of materials for rating agencies, investor engagement, and relevant governance practices.
- Our Chambers Band 1 (2020) - ranked energy disputes practice represents clients in both courts and international arbitrations, across the spectrum of energy-related disputes, including construction disputes, pricing disputes, and sale and purchase agreement disputes. We also provide advice during the contract negotiation stage, specifically relating to investment structuring, the drafting of dispute resolution provisions, and jurisdiction and choice of law issues.