BP Selling Stakes in Key U.K. Carbon Capture Projects

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

BP continues its withdrawal from renewable energy and carbon capture projects with the announcement that it will sell its stakes in two of the U.K.'s leading carbon capture and storage (CCS) projects.

Oil and gas major BP has announced plans to sell its stakes in two leading U.K. carbon capture and storage (CCS) projects, the Net Zero Teesside (NZT) Power project and the Northern Endurance Partnership (NEP). 

Located in the heavily industrialized Teesside region of northern England, the Net Zero Teesside (NZT) Power project is a joint venture with Norway's Equinor to build the world's first gas power plant with carbon capture. Last summer, the partners awarded an £833 million (US$1.14 billion) construction contract to Balfour Beatty (London). For additional information, see July 09, 2025, article - Contracts Awarded for First Gas Plant with Carbon Capture. According to Industrial Info Resources data, there are four active NZT projects ongoing worth more than US$3.4 billion. Subscribers to Industrial Info Resources' Global Market Intelligence (GMI) Project Database can click here for the reports.

BP Continues Green Retreat

In December, BP dropped plans to build one of the U.K.'s largest planned blue hydrogen projects, H2Teesside (H2T), due to an ongoing dispute over whether the site should be used for an artificial intelligence (AI) data center instead. The project would have supplied 1.2 gigawatts (GW) of hydrogen production in the Teesside region, more than 10% of the U.K.'s 2030 hydrogen production target. For additional information, see December 08, 2025, article - BP Drops One of U.K.'s Largest Hydrogen Projects. 

The 'Time is Right'

"As the NZT Power and NEP projects have reached major milestones, including financial close and the start of construction, BP considers this the right time to sell a portion of its equity in both projects," the company confirmed to Reuters. The company has not confirmed the size of the stakes on offer nor any potential buyers, but the sell-off continues the company's new direction of reducing its green energy and carbon capture investment. Recent unconfirmed media reports suggest that the company is also looking at potential exit from the U.K. North Sea oil and gas region due to the high tax burden in place and the government's ban on new North Sea development. 

Carbon Transport

The Northern Endurance Partnership (NEP)--a joint venture of BP, Equinor and TotalEnergies SE--is developing the onshore and offshore infrastructure needed to transport CO2 from carbon capture projects across Teesside and the Humber--known as the East Coast Cluster--to be stored under the North Sea. NEP, via the Endurance saline aquifer and adjacent stores, has access to up to 1 billion tonnes of CO2 storage capacity. Earlier this year, NEP signed the U.K.'s first commercial-scale lease of the seabed for permanent offshore CO2 storage and associated pipeline infrastructure with The Crown Estate. In 2024, NEP reached financial close on the first phase of Teesside's onshore infrastructure -- serving NZT Power and future Teesside-based projects -- and on the 145‑kilometre offshore pipeline to the Endurance Carbon Store. It has also secured the country's first-ever carbon storage permit by the North Sea Transition Authority (NSTA). Construction is underway and start-up is expected in 2028.

Key Takeaways

• BP is selling stakes in its major U.K. carbon capture projects, Net Zero Teesside (NZT) Power and the Northern Endurance Partnership (NEP).
• It continues the company's new strategy of withdrawing from green energy and carbon capture investment.
• Industrial Info Resources is tracking four active NZT Power projects worth more than US$3.4 billion. 

About Industrial Info Resources

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).