‘Transformational’ Net Zero Teesside Power plan moves forward

Teesside has cemented its place at the forefront of clean energy innovation, as two “transformational” carbon capture and storage projects enter the execution phase, promising thousands of jobs and substantial economic growth, industry bosses have said.

Net Zero Teesside Power (NZT Power), alongside the Northern Endurance Partnership (NEP) and energy firms BP, Equinor and TotalEnergies, have announced ‘financial close and entry into the execution phase’.

NZT Power will establish the world’s first gas-fired power station with carbon capture at Teesworks, on the site of the former Redcar steelworks, generating up to 742 megawatts of low-carbon electricity – enough to power more than one million UK homes annually.

Meanwhile, NEP will provide CO2 transport and storage infrastructure to serve three initial carbon capture projects on Teesside as part of the East Coast Cluster.

It is estimated up to two million tonnes of emissions will be captured at the plant, which will be transported to secure subsea storage sites beneath the North Sea via infrastructure provided by NEP.

Ian Hunter, managing director at NZT Power, said: “This 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 while generating flexible, dispatchable low-carbon power for the UK.”

Alex Grant, UK country manager at Equinor, added: “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 while providing jobs and supply chain opportunities.”

Progress on the two projects will run in parallel, with building work being completed by nine engineering, procurement and construction contractors across eight contract packages with a combined value of around £4 billion.

Construction is slated to begin in mid-2025, with operations starting in 2028.

Officials say it will create 3000 construction jobs and 1000 permanent roles, adding an estimated £300 million annually to the local economy.

Louise Kingham, BP’s head of UK, added: “These projects represent another step forward for our 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.”

Tees Valley mayor Ben Houchen added: “This is yet another landmark moment.

“This transformational project will deliver thousands of high-quality jobs for years to come and deliver incredible opportunities for our local workforce, especially our young people.”