Net Zero Teesside Power enters execution phase for carbon capture-first gas plant

Net Zero Teesside Power, a groundbreaking initiative aiming to deliver the world’s first gas-fired power station with carbon capture and storage (CCS), has entered its execution phase, marking a pivotal step in the UK’s transition to low-carbon energy. The project, a joint venture between bp and Equinor, is set to contribute significantly to the UK’s Clean Power 2030 ambition, generating up to 742 megawatts of electricity—enough to power over a million homes annually—while capturing approximately two million tonnes of CO2 per year.

Construction is slated to begin mid-2025, with the plant expected to become operational by 2028. This ambitious timeline underscores the UK’s commitment to addressing energy security and decarbonisation while bolstering regional economies.

Driving Job Creation and Economic Growth

The project is projected to create over 3,000 jobs during its construction phase and sustain 1,000 roles once operational. Located in Teesside, a hub of industrial activity, the initiative is poised to revitalise the area’s economic landscape while establishing it as a global leader in clean energy innovation.

Collaboration with Northern Endurance Partnership

Net Zero Teesside Power is progressing in tandem with the Northern Endurance Partnership (NEP), which has also reached financial close on its CO2 transportation and storage infrastructure. Together, these projects represent a £4 billion investment, bringing cutting-edge engineering and construction expertise to the UK’s industrial heartlands. Notably, NEP’s infrastructure will transport captured CO2 to secure storage beneath the North Sea, ensuring permanent and environmentally safe sequestration.

Engineering and Technology at the Forefront

A consortium of nine leading contractors, including Technip Energies, GE Vernova, Costain, and Shell, has been commissioned to bring this vision to life. These firms will deliver state-of-the-art solutions ranging from CO2 capture and compression systems to subsea pipelines and power integration technologies. The project’s innovative approach also incorporates Shell’s CANSOLV technology and GE Vernova’s H-Class combined cycle turbines, heralding advancements in efficiency and performance in carbon capture and low-carbon energy generation.

A Strategic Framework for Net Zero

Net Zero Teesside Power will operate under a Dispatchable Power Agreement (DPA), a pioneering contractual framework that adapts the Contracts for Difference (CfD) model. This agreement supports natural gas-fired power with CCS, ensuring the plant can meet variable electricity demand while displacing traditional, unabated thermal power generation.

Industry Leaders Speak on the Project’s Potential

Key stakeholders have emphasised the transformative impact of the project. Ian Hunter, Managing Director of Net Zero Teesside Power, described the announcement as a culmination of years of effort, highlighting the dual benefits of job creation and low-carbon power generation. Meanwhile, Equinor’s UK Country Manager, Alex Grant, underlined the initiative’s role in decarbonising the country’s industrial sectors, reinforcing the UK’s net-zero goals.

Government representatives also celebrated the milestone, with Energy Secretary Ed Miliband calling the investment a launchpad for Britain’s clean energy revolution, aimed at replacing energy insecurity with homegrown, sustainable solutions.

Long-Term Implications

As the UK races toward its 2050 net-zero targets, Net Zero Teesside Power and its associated projects are not only setting a precedent for sustainable power generation but also catalysing innovation across the energy and industrial sectors. By leveraging cutting-edge CCS technology, the project promises to solidify the UK’s position as a global leader in clean energy solutions while addressing climate change and fostering economic resilience.