Applying The Midstream Model To Carbon Capture Projects

With bipartisan support and recent high-profile proofs of concept, carbon capture and sequestration ("CCS") is increasingly on the forefront of the energy innovation conversation. Opportunities to build commercial relationships between entities emitting and capturing carbon dioxide ("CO2") are growing in the "point-source" capture space, wherein CCS facilities are placed directly onsite, connected to industrial facilities. While these CCS transactions involve new technologies, the commercial structure is not very different from familiar midstream legal structures. This article discusses some significant similarities and differences between CCS projects and traditional midstream projects.