Greenlight for Net Zero Teesside Power
- Net Zero Teesside Power (NZT Power) announces entry into execution phase, creating and supporting thousands of jobs.
- NZT Power aims to be the world’s first gas-fired power station with carbon capture and storage, providing flexible, low-carbon power to the UK grid.
- Start-up expected in 2028, supporting the UK Government’s Clean Power 2030 ambition.
NZT Power today announced financial close and entry into the execution phase of what aims to be the world’s first gas-fired power station with carbon capture and storage. NZT Power expects to commence construction from mid-2025, with start-up expected in 2028.
NZT Power will progress in parallel with the Northern Endurance Partnership (NEP), which also announced financial close and entry into the execution phase of the CO2 transportation and storage infrastructure to serve three initial carbon capture projects on Teesside as part of the East Coast Cluster. Building work on the two projects will be completed by nine leading engineering, procurement, and construction contractors across eight contract packages with a combined value of around £4bn.
NZT Power could create and support more than 3,000 construction jobs and then generate 1,000 jobs during operations.
Once operational, the combined cycle gas turbine electricity generating station could produce up to 742 megawatts of flexible, dispatchable low-carbon power – equivalent to the average annual electricity requirements of more than 1 million UK homes.
Up to 2 million tonnes of CO2 per year will be captured at the plant, and then transported to secure subsea storage sites beneath the North Sea via infrastructure provided by NEP.
Prime Minister, Keir Starmer, said: “For far too long our industrial heartlands have been held back by 14 years of instability and low-growth. Working people deserve better. Today’s investment is proof that this government is taking a different approach by putting growth first and investing in the industries of the future. That means thousands of jobs secured in the North East and across the UK for years to come. This is only the start. Our Plan for Change puts more money in working people’s pockets, secures home-grown energy and protects billpayers, so tyrants like Putin can’t attack the living standards of working people again.”
Ian Hunter, Managing Director, Net Zero Teesside Power, said: “Today’s announcement is the culmination of years of work to make Net Zero Teesside Power a reality. As the project progresses into the execution phase, we look forward to delivering on our ambition to create and support thousands of jobs whilst generating flexible, dispatchable low-carbon power for the UK.”
Energy Secretary, Ed Miliband, said: “This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East. This is the Government’s mission to make the UK a clean energy superpower in action- replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”
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NZT Power
A joint venture between bp and Equinor, NZT Power could generate up to 742 megawatts of flexible, dispatchable low-carbon power equivalent to the average annual electricity requirements of more than 1 million UK homes.
NZT Power will enter a Dispatchable Power Agreement (DPA) – a contractual framework based on the Contracts for Difference (CfD) standard terms and conditions but adapted to enable natural gas fired power with carbon capture and storage (CCS) to play a mid-merit role in meeting electricity demand, displacing unabated thermal generation plants.
Net Zero Teesside Power and Northern Endurance Partnership have confirmed contracts with the following engineering, procurement, and construction contractors:
- Onshore Power, Capture and Compression – Technip Energies and GE Vernova consortium including Balfour Beatty as the construction partner and Shell as the technology licensor
- Onshore CO2 gathering system and gas connection – Costain
- Linepipe – Onshore and Offshore – Marubeni-Itochu Tubulars Europe Plc with Liberty Steel Hartlepool, Corinth Pipeworks and Equans as the nominated pipe-mills
- Offshore Pipeline, Landfalls, Onshore Outlet Facilities and Water Outfall – Saipem
- Offshore Subsea Injection System – TechnipFMC
- Power and Communications Cable – Alcatel Submarine Networks
- Offshore Systems Engineering – Genesis
- Integrated Project Management Team – Wood
Quotes
Louise Kingham, bp’s head of UK, said: “These projects represent another step forward for bp’s overall investment plans in the UK. They harness the skills, talent and determination of an established industrial region and apply them to the UK’s own energy transition. We’re proud of the potential of these projects to help stimulate economic growth by supporting thousands of jobs and helping UK companies prosper through the vast supply chains involved, while creating the infrastructure to help major industrial companies with their decarbonization plans.”
Alex Grant, UK Country Manager, Equinor, said: “The UK is a key market for Equinor and we have a history of delivering significant energy provision along its East Coast, transitioning from traditional oil and gas demand to renewables and low carbon options including CCS and hydrogen. This is a major step for both Equinor and the UK, helping to decarbonise the country’s industrial heartlands and achieve its net zero ambitions whilst providing jobs and supply chain opportunities. We look forward to working with the new Government to deliver further low carbon projects across in the UK.”
Arnaud Le Foll, Senior Vice President New Business – Carbon Neutrality, TotalEnergies, said: “We are very pleased to be a part of this significant moment in the development of the UK’s CCS industry. NEP is a frontrunner project and we look forward to transporting and permanently storing CO2 from one of the UK’s largest industrial regions. Our stake in NEP contributes to TotalEnergies’ objective to develop significant CO2 storage capacities in the North Sea, where we can leverage our expertise in operations and geosciences.”
Anna Turley, Labour MP for Redcar, said: “I’m delighted that today this major deal has been signed to bring jobs and opportunities in carbon capture to the people of Redcar and Cleveland. We have the skills, the talent and the infrastructure to lead Britain’s new green industrial renaissance and be at the forefront of the global transition to NetZero. Here on Teesside we are leading the way in industrial decarbonisation and I’m delighted this Labour government is backing us to the hilt.”
Chris McDonald, Labour MP for Stockton North, said: ‘This is a monumental moment for Teesside and a project of national and international importance. Net Zero Teesside is more than just a local initiative—it’s a symbol of our region’s unmatched engineering heritage and our readiness to lead the world in tackling the climate crisis. Eyes from across the globe will be on Teesside as we deliver this crucial step in the green industrial revolution.’
Andy McDonald, Labour MP for Middlesbrough and Thornaby East, said: “Net Zero Teesside is the single biggest investment in Teesside in our history. It is worth £4bn, will create 3,000 construction jobs and 1,000 well paid permanent jobs and will make our area leaders in the industries of the future. The importance of this announcement cannot be overstated. Just as we have led the industries of the past with iron and steel, we now look forward with optimism to our future as a global leader in clean technologies. In partnership with business, the government has made sure that the final investment decisions of both government and private partners have been fully aligned, so as to secure the programme and with it the many, many highly skilled well-paid work that will flow for Tees Valley workforce. Securing Net Zero Teesside is a massive achievement for the economy of the Tees Valley and is critical to the UK meeting its decarbonisation objectives. To see this signed, sealed and delivered is incredible.”
Sam White, managing director, natural resources at Costain, commented: “Today’s announcement is a significant step towards UK decarbonisation. We’re working with Net Zero Teesside Power and the Northern Endurance Partnership, its partners and the supply chain to deliver a world-class CO2 gathering network, utilising our first-class capabilities in consultancy, engineering and construction.”
Arnaud Pieton, CEO of Technip Energies, commented: “We are excited to partner with GE Vernova and Balfour Beatty on the first-of-its kind Net Zero Teesside Power project. This award confirms Technip Energies’ leading position as a provider of state-of-the-art integrated CCUS solutions. I would like to thank Net Zero Teesside Power for their trust. This groundbreaking project represents a significant milestone in our collective efforts to advance carbon capture technology at scale and support the UK’s ambitious climate goals through low carbon power generation from gas combined with renewables. By leveraging our Canopy by T.EN™ solution powered by Shell’s CANSOLV CO2 Capture System, we aim to set a new standard for low-carbon power generation. This project not only underscores our commitment to innovation and sustainability but also highlights the critical role of collaboration in driving the energy transition forward.”
Maví Zingoni, CEO, Power at GE Vernova commented: “We believe CCUS technology can be crucial to help decarbonise the planet, and we welcome the commitment from the UK government to invest in its implementation as well as NZT Power’s trust in our technology. Flagship projects like Net Zero Teesside Power can give the industry foundations to grow. We look forward to powering the station with our advanced H-Class combined cycle technology, as well as proceeding with the first commercial use of our Exhaust Gas Recirculation system and integration technologies, which aim to support carbon abatement by boosting the efficiency and performance of carbon capture.”
Leo Quinn, CEO of Balfour Beatty Group, said: “Net Zero Teesside is a transformational project, underpinning the UK’s transition to cleaner and greener energy consumption and driving regional economic growth in Northeast England. Today’s announcement takes us one step closer to realising this ambitious scheme, which will demonstrate collaboration at its finest and see us unite our unique strengths together with Technip Energies’ world-leading engineering and technology integration skills, Shell’s state-of-the-art CANSOLV* CO2 Capture technology and GE Vernova’s unparalleled power generation knowledge.”
Elise H. Nowee, President of Shell Catalysts & Technologies, said: “Being selected as the carbon capture technology provider for Net Zero Teesside Power reflects the proven capabilities of Shell’s CANSOLV* CO₂ technology in delivering substantial, reliable emissions reductions at scale. This project also highlights the strength of our alliance with Technip Energies, which combines Shell Catalysts & Technologies’ expertise in technology licensing with Technip Energies’ excellence in project integration and delivery. Together, we are addressing the growing demand for scalable post-combustion carbon capture solutions. With the potential to capture up to 2 million tonnes of CO₂ annually, Net Zero Teesside Power marks a critical milestone in the UK’s journey toward net zero.”
Luana Duffé, Executive Vice President, New Energy at TechnipFMC, commented: “We are excited to see this development move forward, as it is a significant milestone for the United Kingdom and our Company. TechnipFMC will leverage its industry-leading subsea expertise and proprietary technologies to deliver the first all-electric iEPCI™ for carbon transportation and storage.”
Craig Shanaghey, Executive President of Projects at Wood, said: “As a U.K. headquartered company, continuing to support a world-leading decarbonisation project in our own backyard is monumental. Our integrated team working closely with Net Zero Teesside Power and Northern Endurance Partnership is leading the energy transition by designing and advancing the energy ecosystem. We are proud to be a strategic ally through the full lifecycle of this project from inception to operation.”
Helen Coleman, Managing Director of Genesis, commented: “Genesis is proud to announce the commencement of the NEP Offshore Systems Engineering Services Project. This significant endeavor highlights our premier capabilities in CO2 transport and subsea engineering, reinforcing our role as trusted advisors to our clients throughout the entire project lifecycle. With over 35 years of industry experience, Genesis offers comprehensive and innovative systems engineering services. We look forward to strengthening our collaboration with bp to ensure the safe and successful execution of the NZT & NEP Projects.”
Joanne Leng MBE, Chief Executive, NOF, said: “It is fantastic news today from bp to see the Net Zero Teesside Project reach such a momentous milestone. This news will be welcomed by the supply chain in the region as it means moving into the execution phase which will bring real opportunities, contracts and jobs. NOF stands ready to support the project and all those contractors and suppliers who are involved both now and in the future.”
Olivia Powis, Chief Executive Officer at the CCSA said: “News of financial close for NZT Power and NEP is fantastic for both the CCUS industry and in tackling climate change. Reducing emissions from power generation and industrial processes is of vital importance to reaching the ambitious targets set by the Government to decarbonise heavy industry and the power system. Gas power plants with carbon capture technology are designated as a crucial source of low carbon energy and will enable more renewables onto the system. NZT Power will provide stable, flexible electricity generation to the Teesside industries that rely on low carbon energy sources for decarbonisation. Investing in the CO2 transport and storage infrastructure will send the signals to investors and other capture projects that the UK is serious about meeting our net zero targets and providing our industries with a clear route to decarbonisation. Both the Government and industry now need to ensure this momentum continues, maximising the opportunity that CCUS presents to decarbonise our industries, meet net zero targets and invest in low carbon technologies and skills. This is done by continuing to prioritise the deployment for the clusters and projects that will follow Teesside. This will drive investment in the supply chain, creating and protecting vital jobs. Failure to do so will make it significantly difficult to meet net zero targets.”
Mike Biddle, Executive Director Net Zero, Innovate UK said: “This is a milestone which represents a significant step towards decarbonising industry and achieving net zero emissions. The decision to move to the execution phase of these projects underlines the importance of innovation, collaboration and strategic funding to accelerate the development of low-carbon technology and infrastructure. Net Zero Teesside and the Northern Endurance Partnership projects will reduce emissions, increase energy security, and enable clean growth and employment in the North East and across the UK – we are proud to have supported their development.”
Daren Smith, Chairperson for the Industrial Net Zero Leadership Group, said “The announced financial close and commencement of execution phase for both NZT Power and NEP is excellent news, and brings the UK’s Net Zero ambitions one step closer to realisation. The Tees Valley is ideally placed to locate these critical projects having both the industrial heritage and natural geology. These projects will support the transformation of the Tees Valley into a world class net zero industrial cluster, bringing much needed skilled jobs and wealth generation to the area.”
Joanne Fryett, Chief Executive, NEPIC, said: “I am delighted to hear of the latest announcements giving the green light for Net Zero Teesside Power and the Northern Endurance Partnership, it is welcomed news from us here at NEPIC and from our members throughout the Tees Valley and wider North East. This is the catalyst that we have been waiting for to support industry, as we collectively aim to deliver our Net Zero targets throughout the UK. The announcement truly places Tees Valley as a leader in carbon capture technology and innovation.”
Clare Jackson, CEO of Hydrogen UK, said: “We’re thrilled to see the Northern Endurance Partnership and Net Zero Teesside reach financial close, in what is a huge development for clean energy in the North.
By advancing these flagship projects, we are setting a strong foundation for a net zero future, creating thousands of jobs in Teesside, and reinforcing the UK’s position as a leader in clean energy technologies.”
Jonathan Brash, Labour MP for Hartlepool, said: “This is a massive moment for our region and a huge boost for jobs and growth in our area. I’ve always said that towns like Hartlepool, which used to be powerhouses of the British economy, can be again with the advent of new industries and technologies. Working with fantastic partners like BP we can unlock our region’s limitless potential and become the epicentre of the UK as a green energy superpower.”
Luke Myer, Labour MP for Middlesborough South and East Cleveland, said: “This is a landmark moment for Teesside and the wider region. It means billions of pounds of investment and over 4,000 jobs in the green industries we need. Thank you to all those involved in getting this project to Government, and thank you to Government for listening to us and signing it off. It’s clear that this Government is moving quickly to deliver for a sector previously beset by years of delay. The importance of this moment cannot be overstated. Teesside is back – stronger, cleaner, and ready to lead the world once again!”