Financing U.S. carbon capture projects - published in Project Finance International
26 May 2021
This article, penned by partners Sam Kamyans, John Marciano and associate Sam Guthrie of Allen & Overy’s global Projects, Energy, Natural Resources and Infrastructure practice, provides a guide to identify and navigate the complexities of financing carbon capture projects.
Project Finance International published the article, which delves into the complex set of overlapping legal regimes, commercial considerations, business decisions and parties involved in carbon capture, use, and sequestration (CCUS) projects. The article provides examples of how to develop financial models taking into account project economics, pay-as-you-go, and the federal tax treatment of the section 45Q credit.
A&O is on the cutting edge of CCUS projects, routinely working with sponsors, tax equity and cash equity investors, and lenders which has resulted in developing innovative legal structuring solutions tailored to accommodate varying transactional needs that utilize the 45Q credit.