Linklaters advises on the financing of UK’s first full-scale carbon capture facility integrated with a waste-to-energy plant

Linklaters has advised the lenders on the financing of the UK’s first commercial-scale carbon capture and storage facility integrated with a waste-to-energy plant, to be developed at Encyclis’ Protos Energy Recovery Facility (ERF) in Cheshire.

The facility is among the first to be selected by the Department for Energy Security and Net Zero to benefit from its Waste Sector Industrial Carbon Capture business model and will pave the way for the decarbonisation of the energy-from-waste sector in the UK.

As one of the first industrial projects within the HyNet North West CCUS cluster to reach financial close, the Protos CCS project represents a milestone transaction that will drive industrial investment in the region and support the UK’s modern Industrial Strategy. Once operational, the new facility aims to capture up to 370,000 tonnes of CO2 per year. Captured CO2 will be transported via the HyNet network to depleted gas fields beneath Liverpool Bay, providing permanent storage and underpinning the UK’s net zero ambitions. Commercial operations are targeted to commence by May 2029.

The transaction builds on the Linklaters team’s track record in the UK’s carbon capture industry, having advised on each of the Liverpool Bay, Northern Endurance Partnership and Net Zero Teeside Power carbon capture projects, as well as their longstanding experience across the energy from waste sector, e.g. advising on the financing of the Walsall energy-from-waste facilityand the Protos energy-from-waste facility.

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