Ground-breaking work begins at former Redcar steelworks to enable Net Zero Teesside Power


28 September, 2023 – The preparatory work by Teesworks is now underway following a ground-breaking event and a recent signing of an option-for-lease agreement between Net Zero Teesside (NZT) Power partners bp and Equinor, and Teesworks.

NZT Power aims to be the world’s first gas-fired power station with carbon capture and storage capability and will help drive Teesside’s aim to become the UK’s first decarbonised industrial cluster as early as 2030. The project could create and support up to 4,000 jobs during construction and operations and add up to £300 million to the economy per year.

To mark the major development, Tees Valley Mayor Ben Houchen was joined by senior representatives from bp, NZT Power, the Northern Endurance Partnership, and local business and political stakeholders.

The proposed power station will generate up to 860 megawatts of low carbon electricity – enough to power up to 1.3 million UK homes. Up to two million tonnes of CO2 emissions from the power station will be captured each year – emissions which would otherwise be released into the atmosphere.

The captured CO2 will then be transported by the Northern Endurance Partnership (NEP) by pipeline to a geological storage site under the North Sea, where it will be permanently and safely stored.

The NEP will provide the CO2 transportation and storage infrastructure that will serve East Coast Cluster carbon capture projects – including NZT Power and a wide range of other carbon-emitting businesses across Teesside and the Humber.

A final investment decision will be taken by NZT Power partners in 2024, with the project aiming for commercial operations from 2027.

Chris Daykin, General Manager of the Northern Endurance Partnership, said: “This ground-breaking represents an important step in the right direction for Net Zero Teesside Power and the East Coast Cluster. As we collectively work toward decarbonising 50% of the UK’s industrial emissions, I look forward to seeing the project develop and simultaneously bring economic and energy benefits to the region.”

Tees Valley Mayor Ben Houchen said: “Our joint venture partners have done another brilliant job of getting this agreement over the line, which will kick off the next phase of the project. The thousands of construction jobs this huge and important project will bring are closer than ever as opportunities for local businesses to get involved continues to ramp up.”

Martin Corney, Teesworks CEO, said: “We’re delighted to take this crucial next step which paves the way for the world-first Net Zero Teesside project, which pioneers the advancement of the globe’s low carbon industries on our doorstep, and help future tenants achieve their own low carbon ambitions. Now that all the structures are down, we can get on with the vital remediation work needed to make this project a reality.”