Energy is part of our DNA
The energy sector is undergoing a historic transformation to renewable energy, demanding a new approach. This transition towards green energy places significant demands on all infrastructure companies to rethink their processes and solutions.
The substantial transformation of our energy sector calls for experts who know the energy infrastructure and value chains, both domestically and globally.
Horten has specialised in energy and utilities since the company was established in 1953. We have played a significant role in shaping the energy infrastructure we know in Denmark today. Our lawyers have been at the forefront of the green transformation of our energy systems that we are witnessing. They collaborate daily with clients involved in the development of solar and wind energy, biogas, carbon capture and utilisation (CCU) and carbon capture and storage (CCS) and Power-to-X.
This has given us a solid foundation for working with energy, utilities and infrastructure, and we draw on a large network when advising our clients on investment risks, contracts and complex regulation. We rely on interdisciplinary collaboration and regulatory understanding to empower our clients to confidently navigate the energy sector.
Read more about our sector competencies
Power-to-X and carbon storage
The green transition of energy production is challenging security of supply. This is primarily due to the increasing energy demand and a shift towards decentralised, variable energy production, which relies on weather and wind conditions. Therefore, the most significant future challenge is energy storage and flexibility, necessitating investments in energy infrastructure, storage solutions and encouragement of flexible electricity usage.
Carbon capture and storage (CCS) is a climate technology with great potential. Capturing CO2 and locating suitable underground storage sites for gases is a huge task, with the technology seen as a crucial element in meeting the 2030 climate targets.
Power-to-X (PtX) covers various technologies dedicated to utilising electricity to produce hydrogen. Electrolysis facilitates the conversion of electricity and water into hydrogen, which can be used in e.g. lorries and industry. Additionally, hydrogen can undergo further transformation with CO2 to generate fuels such as methanol or aviation fuel.
Thus, Power-to-X has great potential, and the Danish Energy Agency believes that PtX will play a significant role in the future energy system. All efforts are being made to utilise the new technologies, and one challenge is how the energy sector's infrastructure will adapt to the demands for transporting hydrogen over long distances. Who will win the battle for the infrastructure network?
Wind energy
The wind industry has developed significantly over the past 25 years, benefiting from a favourable economic climate. Small and large players alike have been able to survive, but the future places high demands on maturity and professionalisation.
The supply chain of a wind farm requires numerous suppliers and subcontractors. Trade, supply and product development and framework agreements (often long-term) need to be made. This applies to both small-scale suppliers of individual components and large companies manufacturing major wind turbine components.
We possess strong relations and in-house expertise from the wind industry, giving us extensive knowledge of the industry and a comprehensive understanding of all aspects of wind energy.
We have an inter-disciplinary approach, and the Energy & Infrastructure team collaborates with our real estate experts concerning leases, M&A transactions, cooperation with the GDPR team on compliance matters and the intellectual property experts on trademark protection.
Competencies
- Drafting and negotiating supply chain contracts, e.g. component deliveries, service contracts and Engineering, Procurement & Construction (EPC) contracts, including FIDIC-based contracts.
- Assistance with all legal aspects of project development; landowner agreements, grid connection, procurement of Capital Expenditures (CapEx), power purchase agreements (PPAs), etc.
- Buying and selling companies in the wind industry, including suppliers, developers and projects - Special Purpose Vehicles (SPVs)
Solar energy
Solar energy has huge potential; the technology is coming into place, but its utilisation is impeded by regulatory constraints.
Obtaining regulatory approvals can be a challenge, while planning laws can significantly influence the future of a solar project. Once the facilities are built, the issue of infrastructure becomes paramount. Various projects compete for the available capacity; who will have access to electricity infrastructure? Grid connection is a critical milestone in solar development projects, because if capacity is not there, it needs to be established.
Several of our specialists have backgrounds within the authorities that have influence over the future of solar development projects. We also provide multidisciplinary advice in connection with due diligence and transactions.
Competencies
- Advice on all regulatory and contractual matters in relation to establishing joint ventures for the construction of solar farms.
- Assistance with all legal aspects of project development; landowner agreements, grid connection, procurement of Capital Expenditures (CapEx), power purchase agreements (PPAs), etc.
- Purchase and sale of developers and projects - Special Purpose Vehicles (SPVs).
Utilities
A significant challenge facing the utilities industry is that the world is changing faster than regulations or mindsets can keep up. How do you navigate the stringent framework to operate an agile and adaptable utility business within water, heat and power?
In recent years, the utilities industry has faced significant challenges as it leads the change in the green transition. The circular economy plays a critical role, for how do we ensure wastewater recycling and rainwater adaptation? The waste industry is undergoing corporatisation, and the exposure to competition poses numerous challenges. Furthermore, the players in the energy and utilities sectors need to be more closely linked for enhanced flexibility and efficiency. However, navigating legal constraints proves difficult when seeking new models for sector coupling.
We have specialised lawyers with extensive experience across all utility sectors, providing insight into industry challenges from the inside. We are used to assisting our clients in identifying tailored solutions, which may involve securing exemptions or engaging in dialogue with regulatory authorities. We also assist with adapting legislation by influencing policymaking decisions.
At Horten, we also work across energy, utilities and infrastructure, giving us comprehensive understanding of the entire value chain within the energy sector.
Biogas
Biogas production plays an important role in facilitating the green transition, as it offers a viable alternative to natural gas, thereby reducing CO2 emissions from burning fossil fuels. With biogas production proliferating nationwide, investing in a biogas plant necessitates careful considerations of key factors.
Biogas production is not merely about silos and tanks. The challenges are numerous, the production is part of a lengthy value chain and subject to complex regulatory frameworks. Guarantees of origin are essential to verifying the production of clean energy from biogas plants. Efficient testing systems must ensure that methane gas leakage is minimised. Furthermore, issues such as overcompensation and planning legislation can be obstacles in the process.
Which biogas plants are worthwhile investments? As a biogas investor, it is crucial to expose all associated risks. With our extensive expertise and knowledge of the industry and regulations, we remain vigilant to identifying potential pitfalls.
Horten embraced biogas technology at an early stage, and several of our experts have previously sat on the government side of the table in agencies and ministries. With years of experience, we provide cross-disciplinary advice on due diligence, contract negotiation and regulatory challenges in biogas production and investments in biogas plants.