The Future of Energy - Spring 2024

Brought to you by the international Energy & Utilities Sector Group at Bird & Bird

In Focus - Green Hydrogen

International Green Hydrogen Report 2024

We're delighted to announce the 2024 edition of our International Green Hydrogen Report.

The various uses of hydrogen are starting to gain momentum in a variety of sectors, especially those where emissions are hard to abate such as heavy goods vehicles, mining, rail and aviation.

The 2024 edition of our International Green Hydrogen Report covers the latest updates across the globe, including key jurisdictions across Europe, Asia-Pacific, Africa and The Americas, highlighting key funding and support schemes, and exciting projects happening across the space.

Read the report

Upcoming Events

Energy Futures Conference, London - 11 June 2024

Technological innovation has been a major driver of recent progress in the energy transition to date, with falling costs and improving capabilities from solar panels to electric vehicles and battery storage, but innovation will need to accelerate further to get the energy system on track for net zero.

We are delighted to invite you to our second annual Bird & Bird Energy Futures Conference where we will focus on the key role of innovation in the energy sector, including the opportunities and challenges to be overcome to get keep the sector moving forward at pace. Our expert speakers will share insights, discuss trends, and explore the legal environment which can enable the latest innovative breakthroughs in clean energy.

The conference will include a keynote speech from Michael Liebreich, Managing Partner, EcoPragma Capital & CEO, Liebreich Associates and the sessions will include:

• Accelerating the smart grid, opportunities and challenges
• Financing the future: What to watch out for when financing BESS projects
• Innovative business solutions in the energy sector
• Innovating the energy sector: A start-up perspective

Sign up here

Updates from our International Network

Identifying legal challenges in the Swedish hydrogen market

On 14 March this year, the Swedish Government presented the long-term objectives and guidelines for Swedish energy policy, and it is no surprise that the Government therein confirms the prediction that fossil-free hydrogen will play an important role in Sweden’s future energy system. The Government also confirms the view that fossil-free hydrogen is the best way to phase out fossil-fuels in the industrial sector, and an important factor to the energy transition for heavy traffic. What is perhaps more surprising is that the Government does not anticipate that any legislative changes will be necessary to enable and facilitate the deployment of fossil-free hydrogen production and infrastructure going forward. Read our article to find out more about the developments in the Swedish hydrogen market.

For more information please contact Mattias Lindberg or Kristin Urdal.

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Current European plans to promote hydrogen technologies: The Net Zero Industry Act

The plans for the use of green hydrogen and its production are known to be ambitious. While Germany, at least in the short to medium term, is primarily focussing on importing hydrogen from outside Europe, the plans at European level also envisage a significant ramp-up of production capacities within the EU. According to the European Commission, manufacturers of electrolysers in the EU should consolidate their technological leadership and actively contribute to shaping these markets. The RePowerEU plan envisages that 10 million tonnes of renewable hydrogen will be produced within the EU by 2030 and up to a further 10 million tonnes will be imported. The total capacity of installed electrolysis capacity in the EU should be at least 100 GW by 2030.

For more information please contact Matthias Lang or Anja Holtermann.

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Polish Government launches work on draft Hydrogen Law

An important development has emerged in the Polish energy sector. A new draft amendment to the Energy Law, designated as project number UD36, has been introduced into the legislative and program agenda of the Polish Council of Ministers. This amendment seeks to establish a robust legal framework for hydrogen, superseding the current draft, UD382. This initiative marks a substantial progression in delineating the regulatory landscape governing hydrogen within our energy sector.

For more information please contact Tomasz Chabrzyk.

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Use of AI within the energy sector – Ofgem’s proposals and call for input

Ofgem has put forward its initial views in a Call for Input published on 5 April 2024 on the existing regulatory framework on the use of AI within the energy sector. While they suggest that there is adequate regulation to capture the use of AI, they believe producing regulatory guidance on the risk-based use of AI in the energy sector will prove valuable. As such Ofgem is seeking views on their proposals about how AI should be used safely and responsibly within the energy sector in a way that fosters innovation. Organisations within the energy sector who either use or are looking to use AI, technology companies, AI developers, and those working on AI policy, amongst others, are asked to respond to the proposals.

For more information please contact Michael Rudd or Kathryn Parker.

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Does the UK’s withdrawal from the ECT signify the end of protection for those who invest in the Energy sector?

On 22 February 2024 the United Kingdom announced its withdrawal from the Energy Charter Treaty (ECT). In this article we discuss whether the UK’s withdrawal from the ECT signify the end of protection for those who invest in the Energy sector or is the impact of withdrawal minimal?

The UK government has cited the failure of efforts to modernise the treaty in line with climate change objectives as the main driver behind its decision to withdraw. As we discuss in more detail below, withdrawal from the ECT will not impact investments already made but it will impact those who invest after the withdrawal date leaving their investments at risk of changes in government energy policy, something the ECT was designed to minimise.

For more information please contact Jonathan Speed or Louise Lanzkron.

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Adoption of the Critical Raw Materials Act by the European Council on 18 March 2024

Following lengthy discussions and the proposal adopted by the Commission last year, Europe now has a text on critical and strategic materials, i.e. materials whose shortage would disrupt the functioning of several sectors of activity because they are present in products that are essential to the economy of each Member State and to everyday life.

For more information please contact Stan Andreassen or Boris Martor.

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Solar Energy & Corporate PPAs in Singapore

Projects to deploy solar energy via onsite solar panels or arrays, as well as offsite commercial arrangements are commonly facilitated by corporate power purchase agreements (“PPA”). In essence, corporate PPAs comprise a range of commercial agreements which govern the sale of green electricity (for onsite PPAs) or govern the sale of financial attributes and energy price hedging (for offsite PPAs).

For more information please contact Sandra Seah or Terrance Goh.

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Carbon Capture, Utilisation and Storage (CCUS): A Singapore Perspective

Singapore has a variety of strategies to advance Singapore’s energy transition. This includes improving the efficiency of power generation, maximising solar and ESS deployment, importing cleaner energy from other countries, and pre-positioning Singapore for new carbon-mitigation strategies, such as CCUS.

For more information please contact Sandra Seah or Terrance Goh.

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Carbon Credits framework comparison across Singapore, Malaysia & Indonesia

The global green movement has resulted in new and innovative ways of generating and using power. One innovative tool to reduce our carbon footprint is the introduction of carbon credits. Carbon credit is still a relatively new concept especially in Asia. In this article we offer a comprehensive look at the evolving carbon credit systems within Singapore, Malaysia, and Indonesia, three dynamic Southeast Asian economies.

This collaborative effort by Bird & Bird, Nurjadin Sumono Mulyadi & Partners, and Azmi & Associates, dissects the intricacies of each country’s approach to carbon trading, providing invaluable insights for businesses and policymakers aiming to navigate the complexities of climate change mitigation. Read more to understand how these neighbouring nations are shaping the future of sustainable development through innovative environmental finance.

For more information please contact Marcus Chow, Jolie Giouw or Luke Oon.

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