Fracking Under Fire: How Integrated Expertise Defended a Nation’s Energy Policy

Brief

An independent oil and gas exploration and production company (“the company”) launched fracking operations in a European country, initially securing government approval. However, amid rising environmental concerns, public opposition, and fears that the energy produced would mostly benefit neighbouring countries, the government reversed its position. The reversal triggered a new requirement for an Environmental Impact Assessment (EIA), which the company opposed.

As a result, the company claimed its assets were stranded and worthless, seeking €650 million (US$ 748 million) in compensation for lost investment and future earnings. The government countered that the company’s projections were unrealistic and that the investment was poorly placed due to lower-than-expected gas yields.

What we did

To support the government’s case in this high-value investor-state arbitration, HKA assembled a multidisciplinary team of experts in fracking operations, energy policy, environmental impact assessment, and social licence to operate. This collaborative and integrated approach ensured that all aspects of the dispute, including technical, regulatory, and societal factors, were addressed strategically and coherently.

Outcomes

The trial, in which all three HKA experts testified, took place in 2025, with a verdict pending. HKA’s integrated expertise and clear communication enabled the client to present a robust, evidence-based case. This case demonstrates HKA’s ability to bring together specialists across disciplines, delivering strategic insight and practical support in complex, environmental disputes.