Takeaways

• Linklaters advised lenders on financing the UK’s first full-scale carbon capture facility integrated with a waste-to-energy plant.
• The project, based at Encyclis’ Protos Energy Recovery Facility in Cheshire, will capture up to 370,000 tonnes of CO₂ annually.
• The facility marks a key milestone for the UK’s net-zero strategy and the HyNet North West CCUS cluster.

Linklaters has advised the lenders on the financing of the UK’s first commercial-scale carbon capture and storage (CCS) facility integrated with a waste-to-energy plant, a groundbreaking project that underlines the nation’s push toward net-zero emissions.

The facility will be developed at Encyclis’ Protos Energy Recovery Facility (ERF) in Cheshire, one of the first projects to be supported under the Department for Energy Security and Net Zero’s Waste Sector Industrial Carbon Capture business model. The project aims to help decarbonize the UK’s energy-from-waste sector and set a precedent for similar future initiatives.

Read More: UK Firm Turns Captured CO2 into Materials for Roads, Buildings

Once operational, the Protos CCS project is expected to capture up to 370,000 tonnes of carbon dioxide (CO₂) each year. The captured CO₂ will be transported through the HyNet network and permanently stored in depleted gas fields beneath Liverpool Bay, contributing directly to the UK’s efforts to achieve net-zero carbon emissions by 2050. Commercial operations are slated to begin by May 2029.

The Protos CCS project represents a significant step forward for industrial decarbonization in the North West. As one of the first projects within the HyNet North West CCUS cluster to reach financial close, it is set to drive further investment in low-carbon technologies and strengthen the UK’s Industrial Strategy focused on sustainable growth and innovation.

The transaction also builds on Linklaters’ extensive experience in the UK’s carbon capture and energy-from-waste markets. The firm has previously advised on major carbon capture projects, including Liverpool Bay, Northern Endurance Partnership, and Net Zero Teesside Power. Additionally, Linklaters has a strong track record in energy-from-waste financing, having advised on projects such as the Walsall and Protos energy recovery facilities.

The Linklaters advisory team was led by Energy & Infrastructure partners Richard Ginks and Richard Coar, alongside managing associate Isabella Albani. The team also included associates Ed Jackson, Aisling O’Kane, Paras Marya, and Katerina Lipanski, with real estate counsel Imogen Jones providing additional support.

Also Read: What Is Carbon Capture & Storage? Technology, Benefits & Risks

The successful financing of the Protos CCS facility highlights growing confidence among investors and financial institutions in the UK’s emerging carbon capture, utilization, and storage (CCUS) market. As the UK seeks to scale up its decarbonization infrastructure, projects like Protos will play a critical role in demonstrating how industrial sectors can contribute to achieving long-term climate goals.

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Source: legaldesire.com