Surveying the Risks of Carbon Dioxide: Geological Sequestration and Storage Projects in the United States

May 2009
Environmental Law Reporter
Donna M. Attanasio

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Energy companies are likely to find new market niche opportunities in electric generation projects that are coupled with carbon capture and geological sequestration and storage (GS), once the technological hurdles are surmounted and commercial viability is shown. However, these projects pose challenging risk assessment issues for potential equity investors and debtholders. National GS standards are developing slowly and without a comprehensive framework. Some state laws are more conducive to GS development than others, and therefore certain projects may have significant location-based legal advantages over others. In all cases, because the law is evolving, potential GS projects in the United States have a level of legal risk requiring careful assessment and understanding before investing.