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BP seeks Government support to boost Teesside’s net-zero future

An energy operator says it is “backing Teesside…for a net-zero future” after submitting bids to the Government to fuel low-carbon developments.

BP has applied for backing from phase two of the Carbon Capture Usage and Storage cluster sequencing process.

If successful, bosses say the Net Zero Teesside Power (NZT Power) and H2Teesside hydrogen projects will be eligible for Downing Street support.

NZT Power, a joint venture between BP and Equinor, is based on a blueprint to operate as the UK’s first fully integrated commercial-scale gas-fired power station with carbon capture prowess.

Officials say it could provide enough power for up to 1.3 million homes while capturing up to two million tonnes of CO2 every year.

They add emissions would be stored under the North Sea by the Northern Endurance Partnership project  a joint venture led by BP alongside Equinor, National Grid Ventures, Shell and Total Energies.

H2Teesside, announced in March last year, is a blue hydrogen production site, which the firm says could be operational by 2027 and producing 1GW of hydrogen from natural gas by 2030.

BP’s Government applications come after Whitehall chose the Northern Endurance Partnership’s East Coast Cluster, which includes NZT Power, as one of the UK’s first carbon capture, usage and storage clusters in October last year.

Louise Kingham, BP’s UK head of country and senior vice president of Europe, said the business was proud to be “backing Teesside”.

She said: “These bids represent an important milestone in Teesside’s development as a clean energy hub.

“With its tightly clustered heavy industry and proud industrial heritage, it is perfectly placed for a net-zero future.”

Tees Valley Mayor Ben Houchen said: “These two ground-breaking projects are putting our scientists and engineers at the forefront of developing the key technologies that will be needed the world over if we are to reduce emissions – making our region a global centre of excellence for hydrogen and carbon capture technology.

Councillor Mary Lanigan, leader of Redcar & Cleveland Borough Council, added: “This is another vital step forward as we continue to attract globally important industry to our borough, which will bring high-quality jobs, safeguard thousands of others and deliver on our plan to radically reduce carbon emissions.”

Pictured above, from left to right, are Bernard Looney, BP chief executive; Louise Kingham, BP’s UK head of country and senior vice president of Europe; and Tees Valley Mayor Ben Houchen. They are pictured at the Teesworks site, which is being redeveloped from a former steelworks base into a business hub focused on clean energy