Contracts Awarded for First Gas Plant with Carbon Capture

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The world's first commercial gas-fired power station with carbon capture and storage (CCS) from the outset, Net Zero Teesside Power (NZT Power), in the U.K. has advanced, with the £833 million (US$1.14 billion) construction contract going to Balfour Beatty (London).

The company has been selected by Net Zero Teesside Power Ltd., a joint venture of BP (London, England) and Equinor (NYSE:EQNR) (Stavanger, Norway), to build the 742-megawatt (MW) plant, which will generate enough power for more than 1 million homes. It will also build the post-combustion carbon capture system, which is expected to capture up to 2 million tonnes of CO2 per year, before it is compressed and fed directly into the offshore pipeline to be stored under the North Sea by the Northern Endurance Partnership -- a joint venture between bp, Equinor and TotalEnergies SE (NYSE:TTE) (Courbevoie, France). Northern Endurance Partnership is the CO2 transportation and storage provider for the East Coast Cluster and will provide the infrastructure that will serve three initial carbon capture projects on Teesside: NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture. The infrastructure will include a CO2-gathering network and onshore compression facilities as well as a 145 kilometers (km) offshore pipeline and subsea injection and monitoring facilities for the Endurance saline aquifer located around 1 kilometer below the seabed. The infrastructure will transport and permanently store up to an initial 4 million tonnes of CO2 per year.

"Net Zero Teesside Power is an ambitious scheme, forging the path towards the sustainable infrastructure of the future and positioning the U.K. as a leader in cleaner, greener energy consumption," said Leo Quinn, Balfour Beatty Group chief executive. "The scheme will not only be a critical driver in achieving net zero but will also play a key role in boosting regional economic growth in the North-East of England; generating thousands of employment opportunities both in the immediate term and in the future." Industrial Info is tracking seven projects under the Net Zero Teesside scheme worth almost US$4 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

NZT Power will act as the driver behind making the heavily industrialized Teesside region the U.K. 's first decarbonized industrial cluster as part of the wider East Coast Cluster initiative, which aims to capture and store up to 27 million tonnes of CO2 annually by the mid-2030s, accounting for almost half of all the emissions from the U.K.'s industrial clusters. The contract award follows on from the U.K. government's pledge in October of almost £22 billion (US$28.8 billion) in funding for the country's two leading carbon capture and storage (CCS) initiatives in the north of England: the East Coast Cluster initiative in the Teesside and Humber regions of northeast England and the HyNet initiative in the Merseyside area of northwest England and north Wales.

The regions are responsible for most of the country's CO2 emissions from a wide range of industries, including manufacturing, steelmaking, shipping, chemicals, refining and cement making. Each of the clusters boast a large number of specific CCS projects that will be first to benefit from the new funding. They are expected to create 4,000 new jobs, along with a further 50,000 jobs in the wider pipeline, while also attracting up to £8 billion (US$8.7 billion) in private investment. For additional information, see October 14, 2024, article - U.K. Pledges $28 Billion to Build Carbon Capture Industry.

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, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).