Hydrogen Projects
Legal and Regulatory Challenges and Opportunities
Published: 2021
Pages: 111
eBook: 9781787424449
This Special Report considers the key legal and regulatory challenges and opportunities in developing, financing and operating hydrogen projects. Written for a legal and non-legal audience, it will appeal to those looking for a deeper understanding of the opportunities in the hydrogen sector and ways in which some of these may be realised.
Key technologies, methods and hydrogen's role in the net zero agenda;
Key stakeholders and their roles;
Key policies and legal frameworks; and
Revenue streams, commercial models and issues for financiers.
The Special Report will also consider how hydrogen can be used in industrial processes, transport and the heating sectors. Written for a legal and non-legal audience, this report will appeal to those looking for a deeper understanding of the opportunities in the hydrogen sector and ways in which some of these may be realised.
Table of Contents
| Cover Page | Cover | |
|---|---|---|
| Title Page | 1 | |
| Copyright Page | 2 | |
| Contents | 3 | |
| I. Introduction | 7 | |
| 1. The background | 7 | |
| 2. What do we mean when we talk about hydrogen? | 11 | |
| 3. Challenges and opportunities | 14 | |
| 3.1 Transport | 14 | |
| 3.2 Industrial processes | 15 | |
| 3.3 Heating and cooling | 15 | |
| 4. Hydrogen and net zero | 16 | |
| II. Stakeholders | 17 | |
| 1. Introduction | 17 | |
| 2. Government and international cooperation | 18 | |
| 3. Government at a national level | 21 | |
| 4. Sector regulator | 23 | |
| 5. Producers | 26 | |
| 5.1 Green hydrogen | 26 | |
| 5.2 Blue hydrogen | 27 | |
| 6. Consumers | 27 | |
| 7. Finance and insurance | 29 | |
| III. Production | 33 | |
| 1. Types of hydrogen | 33 | |
| 2. Regulation | 37 | |
| IV. Transportation and storage | 39 | |
| 1. Introduction | 39 | |
| 2. Health and safety issues | 41 | |
| 3. Consents and land rights | 43 | |
| 4. International transportation | 44 | |
| 5. Issues and opportunities | 46 | |
| V. Applications | 49 | |
| 1. Industrial processes | 49 | |
| 1.1 Introduction | 49 | |
| 1.2 Development of hydrogen industrial clusters | 50 | |
| 1.3 Health and safety (and technical) issues | 51 | |
| 1.4 Consent issues | 52 | |
| 1.5 Contractual structures and revenue considerations | 53 | |
| 2. Heating and cooling | 54 | |
| 2.1 Introduction | 54 | |
| 2.2 Customer-facing issues | 55 | |
| 2.3 Safety and appliance standards | 56 | |
| 2.4 Modification of existing infrastructure | 58 | |
| 2.5 Offtake and price control considerations | 58 | |
| 3. Transport | 59 | |
| 3.1 Introduction | 59 | |
| 3.2 Road transport | 60 | |
| 3.3 Fuelling with hydrogen | 63 | |
| 3.4 National and regional initiatives to promote hydrogen-powered vehicles | 65 | |
| 3.5 Rail transport | 66 | |
| 3.6 Marine transport | 66 | |
| 3.7 Aviation | 68 | |
| 3.8 Legal challenges and opportunities | 68 | |
| 4. Energy system management | 72 | |
| 4.1 Introduction | 72 | |
| 4.2 Traceability of low-carbon hydrogen | 77 | |
| VI. M&A and financing issues in hydrogen projects | 81 | |
| 1. Introduction | 81 | |
| 2. Key structures | 82 | |
| 3. Key terms and requirements for investment | 83 | |
| 4. Project company-based joint venture approach | 83 | |
| 5. Project financing | 85 | |
| 6. Leasing model of financing | 87 | |
| 7. Opportunities and obstacles for investors and financiers | 88 | |
| 8. The cost barrier | 89 | |
| 9. Getting supply to meet demand | 91 | |
| VII. Conclusion | 97 | |
| Notes | 101 | |
| About the author | 109 | |
| About Globe Law and Business | 111 |
Dalia Majumder-Russell
Partner, Cameron McKenna Nabarro Olswang LLP
[email protected]
Dalia Majumder-Russell focuses on energy transition technologies and infrastructure projects as part of the Energy and Climate Change practice in the CMS London office.
Dalia specialises in complex process energy projects advising on renewable energy transactions, commercial agreements and the regulatory frameworks within which such projects operate. For over 10 years she has advised governments, lenders and sponsors in Europe, Africa and North America on legal issues arising across the project lifecycle.
Dalia is passionate about the decarbonisation agenda across the energy, heat and transport sectors. She leads CMS's carbon capture usage and storage (CCUS) and hydrogen initiatives, and champions the firm's thought leadership on the subject which includes publication of the multi-jurisdictional CMS Expert Guide to Hydrogen Law and Regulation.
Dalia regularly speaks at industry events on hydrogen, CCUS and related matters and is a member of a number of industry expert groups helping catalyse the development of new regulation, legal framework and contractual standards in the sector.