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Contractors for engineering, procurement, and construction contracts with a combined value of around £4bn have been selected by Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP).
The Teesside-based projects, which would contribute to the UK’s journey towards net zero emissions by 2050, have achieved a major milestone with the selection of nine leading specialist contractors across eight contract packages.
The final award of contracts is subject to the receipt of relevant regulatory clearances and positive Final Investment Decisions (FID) by the projects and UK government, planned for September 2024 or earlier. Following FID, the projects would be aiming for first commercial operations from 2027.
The contractors announced are:
- Onshore Power, Capture and Compression – Technip Energies and GE Vernova consortium including Balfour Beatty as the construction partner and Shell as the technology licensor
- Onshore CO2 gathering system and gas connection – Costain
- Linepipe – Onshore and Offshore – Marubeni-Itochu Tubulars Europe Plc with Liberty Steel Hartlepool, Corinth Pipeworks and Eisenbau Kramer GmbH as the nominated pipe-mills
- Offshore Pipeline, Landfalls, Onshore Outlet Facilities and Water Outfall – Saipem
- Offshore Subsea Injection System – TechnipFMC
- Power and Communications Cable – Alcatel Submarine Networks
- Offshore Systems Engineering – Genesis
- Integrated Project Management Team – Wood
The projects represent a significant opportunity for the UK supply chain. The selected contractors will continue working with the local and regional supply chain, with further engagement taking place over the coming weeks and months.
NZT Power, a joint venture between bp and Equinor, could generate up to 860 megawatts of flexible, dispatchable low-carbon power equivalent to the average electricity requirements of around 1.3 million UK homes.
Up to 2 million tonnes of CO2 per year would be captured at the plant, and then transported and securely stored by the NEP in subsea storage sites beneath the North Sea. NZT Power could create and support more than 3,000 construction jobs and then require around 1,000 jobs annually during operations until 2050.
NEP, a joint venture between bp, Equinor, and TotalEnergies, is the CO2 transportation and storage provider for the East Coast Cluster (ECC).
The Teesside onshore NEP infrastructure would serve the Teesside-based carbon capture projects – NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture – that were selected for first connection to the ECC by DESNZ in March 2023 as part of the UK’s cluster sequencing process for carbon capture usage and storage (CCUS). It is anticipated that around 4 million tonnes of CO2 per year from these projects would be transported and stored from 2027.
Ben Houchen, Tees Valley Mayor, said; “This would be the single biggest investment in Teesside since ICI. It cannot be understated the transformational economic impact this will have right across Teesside, Darlington and Hartlepool.
“Our area is now the world-leading centre in developing the clean, green industries of the future, which most importantly will deliver the highly-skilled well-paid jobs of the future. This investment of £4bn will support businesses up and down the local supply chain with companies like Hartlepool-based Liberty Steel already netting a multi-million pound contract.”
