agriculture , steel and cement production , and the ammonia and methanol industries .
Bracewell ’ s lawyers have advised clients on the nuances of utilization and safety issues related to the distribution of hydrogen as retail fuel , the development of mobile hydrogen refueling stations , the use of hydrogen as pollution control in refineries , hydrogen distribution networks in the Gulf Coast region , supply of hydrogen to industrial customers and as a fuel into California . We represent hydrogen suppliers and providers of tube trailers inside third party industrial facilities , among others .
Joint Venture and Contractual Expertise
Hydrogen projects often involve an interdependent combination of processes and technologies that are used to produce , transport , store and / or utilize hydrogen As such , any hydrogen project will require a tailored set of contractual arrangements between the various project participants , which allow for the integration of these processes and address the various risks that each participant is exposed to by virtue of its participation in the project . Additionally , each project structure will need to take into consideration the goals of a potentially diverse set of investors which can range from tax equity investors and sponsoring governmental agencies to the base project owners and their capital providers .
Whether in the form of an equity level joint venture arrangement or commercial arrangements with outside service providers , Bracewell ’ s project development team has the expertise to advise clients on all steps of structuring and documenting these project level structures .
Drawing on our extensive experience in the power , upstream and midstream energy space , we are able to assist clients in developing project structures which balance and allocate risks associated with processspecific operational and reliability issues ( such as how power purchase agreements might impact a baselevel of feed stock for production of green hydrogen as well as how transportation and storage agreements may be impacted by those provisions ) and regulatory compliance requirements ( such as qualifications for relevant production and investment tax credits and the transferability of such credits ) with the underlying assumptions on which the project was underwritten .
Project Development and Real Property Expertise
Bracewell ’ s project development team has counseled clients on a wide variety of real property issues relevant to hydrogen production , transportation , storage and utilization projects . We have the expertise to assist clients in navigating the often-complex set of state and federal legal issues surrounding which real property rights project participants must obtain to conduct underground storage of hydrogen at a given site . Our teams ’ extensive experience in the midstream space allows us to advise on emerging regulatory issues related to the transportation and distribution of hydrogen and to assist clients in negotiating applicable off-take and transportation agreements for hydrogen .
Additionally , project sponsors and investors will have to understand and comply with extensive permitting and regulatory regimes applicable to each jurisdiction in which they operate . This often requires addressing concerns of , and interactions with , other stakeholders in the area where the project is located , including governmental entities as well as affected landowners in and around the project area . Bracewell has a full-service team that can assist project participants with the relevant permitting , notice and other regulatory compliance requirements associated with hydrogen projects . Our team also has extensive experience engaging with outside stakeholders who may attempt to impede project development and preemptively addressing the risks that they pose to a project .
Tax Expertise
Bracewell ’ s transactional tax practice is almost exclusively focused on the energy industry and has developed significant expertise in energy transition incentives , particularly federal tax credits enacted through the Inflation Reduction Act . Bracewell ’ s tax group has been an important part of market leading energy transition projects including carbon capture , clean hydrogen and clean fuels utilizing hydrogen . The tax group not only focuses on qualification for credits , but also commercial agreements including covenants necessary to claim the credits , and indemnities for lost credits in the event of a failure to perform . In addition , the tax practice advises on the monetization of tax credits , including through tax equity transactions , and elections for direct pay or transfer of energy credits . The appropriate monetization strategy is evaluated in the early stages of project development , so early planning is done with a view toward long term capital opportunities . bracewell . com