Net Zero Teesside (NZT) Power named on DESNZ’s Track 1 Negotiations Project List
- NZT Power, a world-first gas-fired power station with carbon capture, has been named on the Department for Energy Security and Net Zero’s (DESNZ) Track 1 Negotiations Project list.
- The project will now proceed to negotiations for support through the relevant Business Models that will enable a final investment decision in 2024
- The project aims to commence operation in 2027 and provide flexible low carbon electricity sufficient for around 1.3 million homes.
30 March 2023 – Net Zero Teesside Power (NZT Power) has been named on the Track 1 Negotiations Project List by The Department for Energy Security and Net Zero (DESNZ) as part of Phase 2 of the Cluster Sequencing process for Carbon Capture Usage and Storage (CCUS).
The project, set to be the world’s first commercial-scale gas-fired power station with carbon capture, was selected alongside two other projects – bpH2Teesside and Teesside Hydrogen CO2 Capture – within the East Coast Cluster (ECC). NZT Power will now proceed to negotiations for support through the relevant Business Models that will enable a final investment decision in 2024. Funding of the project remains subject to the outcome of negotiations, the passing of necessary legislation and compliance with subsidy control rules.
The project will help support the government’s commitment to accelerate its decarbonisation ambitions, realise economic benefits across the East Coast of England, kick start the hydrogen economy and place the UK on a path to decarbonising our power system by 2035, while maintaining security of supply.
The proposed combined cycle gas turbine electricity generating station will have an electrical output of up to 860 megawatts (MW), enough to power up to 1.3 million homes per year. The project will create up to 4,000 jobs during its construction and add up to £300 million to the economy each year. Up to 2 million tonnes of CO2 emissions from the power station will be captured and stored each year.
NZT Power – a joint venture between bp and Equinor, with bp leading as operator – sits at the heart of a decarbonised cluster of industries on Teesside and will be connected to the CO2 transportation and storage infrastructure being developed by the Northern Endurance Partnership to serve the both the Teesside and Humber regions within the ECC.
In October 2021, the ECC was named one of the UK’s first two CCUS clusters following a successful bid in Phase 1 of the government’s process. The cluster will provide safe offshore CO2 storage under the North Sea with first commercial operations expected in 2027.
Ian Hunter, Managing Director, Net Zero Teesside Power, said: “The selection of NZT Power is a hugely positive step forward for Teesside and the UK. NZT Power will create and support thousands of jobs, whilst providing enough low carbon power to meet the electricity needs of around 1.3 million homes. NZT Power is designed to provide flexible low-carbon power – an essential back up to intermittent forms of renewable power – enabling the further deployment of wind and solar power nationally. Thank you to our partners in DESNZ for continuing to maintain momentum and support.”
Media Contact for Net Zero Teesside
N: Simon Rendell / Kieran Patel
T: 0207 413 3506