NZT Power – the world’s first gas-fired power station with carbon capture and storage – now has its major financing in place and can progress in parallel with the Northern Endurance Partnership (NEP), which will provide the CO2 transportation and storage infrastructure 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. Project partners bp, Equinor and TotalEnergies today (Tue Dec 10) announced ‘financial close and entry into the execution phase’ for the highly anticipated project, creating and supporting 4,000 well-paid, highly skilled local jobs.
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The decision paves the way for construction to commence from mid-2025, with start-up expected in 2028.
Ian Hunter, Managing Director of 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.”
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.
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.”
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.”
Tees Valley Mayor Ben Houchen said: “This is yet another landmark moment in the development of a world-leading development right here in Teesside.
“This transformational project that will deliver thousands of high-quality jobs for years to come and deliver incredible opportunities for our local workforce, especially our young people.
“We have set an example on how working with the private sector can bring massive benefits by moving quickly, delivering hugely complex projects and attracting investment on a scale not seen on Teesside since ICI.
“This decision means spades will soon be in the ground and people will be able to see for themselves how our area is being transformed.”