Glossary entry

Carbon Capture, Carbon Capture Storage (CCS) & Carbon Capture Usage and Storage (CCUS)

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Definitions

Option 1

Carbon Capture Storage (CCS) means the use of technology to safely:

(i) capture waste carbon dioxide at the emissions source;
(ii) transport the captured carbon dioxide; and
(iii) [either use or] permanently store the captured carbon dioxide,

such that the captured carbon dioxide is not released into the atmosphere.

Option 2

Carbon Capture Storage (CCS) means the [technology for and] process of capturing, transporting [and using or] storing waste carbon dioxide.

Drafting notes

The EU’s CCS Directive (2009/31/EC) provides that CCS should not serve as an incentive to increase the share of fossil fuel power plants. Its development should not lead to a reduction of efforts to support energy saving policies, renewable energies and other safe and sustainable low carbon technologies, both in research and financial terms. Lawyers drafting agreements that provide for CCS/CCUS should raise with clients the need for CCS/ CCUS to be a “last resort” technology” where there is no viable alternative to producing the waste carbon dioxide.

The definitions above can be expanded to refer to the specific technology used or to the underlying industrial process / burning of fossil fuels necessitating CCS or CCUS. For example:

  • the definition could be tailored to specifically mandate the use of a particular type of CCS technology that provides the best net emissions outcome – e.g. ‘pre-combustion capture’ or ‘post-combustion capture’; or
  • the definition could be tailored to refer to capturing waste carbon dioxide emitted in the production of cement or in biomass energy production.

Application

Obliging counterparties to engage in CCS/CCUS where there is no viable alternative to producing the waste carbon dioxide (e.g. in the production of cement).

Supply chain clauses, agreements concerning aggregate material production, manufacturing and primary energy production.