10th December 2024: Northern Endurance Partnership (NEP), the CO2 transportation and storage provider for the East Coast Cluster, today announced financial close, giving the green light to proceed to the execution phase of the UK’s first CO2 transportation and storage infrastructure network that will serve three initial carbon capture projects on Teesside: NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture.
NEP expects to commence construction from the middle of 2025 with start-up expected in 2028. The infrastructure includes a CO2 gathering network and onshore compression facilities as well as a 145km offshore pipeline and subsea injection and monitoring facilities for the Endurance saline aquifer located around 1000m below the seabed. The infrastructure will transport and permanently store up to an initial 4 million tonnes of CO2 per year.
NEP’s CO2 transportation and storage infrastructure on Teesside will progress in parallel with NZT Power, which has also announced financial close and entry into the execution phase of a first-of-a-kind gas-fired power station with carbon capture technology. Building work across the two projects will be completed by nine leading engineering, procurement, and construction contractors across eight contract packages with a combined value of around £4bn.
The East Coast Cluster and the three Teesside-based carbon capture projects have been selected as part of the UK’s cluster sequencing process for carbon capture usage and storage – in support of UK Government’s pathway to net zero emissions by 2050.
NEP has also been granted government approval to progress development engineering of the Humber Carbon Capture Pipeline (HCCP), the proposed onshore infrastructure project that would transport CO2 from future selected carbon capture projects in the Humber region. During the summer of 2024, NEP conducted a ten-event public consultation on the HCCP. The feedback gathered is being reviewed ahead of another round of consultation before NEP applies for development consent.
Future expansion of the East Coast Cluster across Teesside and the Humber could enable the transportation and permanent storage of up to an average of around 23 million tonnes of CO2 per year from future selected carbon capture projects – helping the East Coast Cluster create and support an average of 25,000 jobs per year.
Prime Minister, Keir Starmer, said: “For far too long our industrial heartlands have been held back by 14 years of instability and low-growth. Working people deserve better. Today’s investment is proof that this government is taking a different approach by putting growth first and investing in the industries of the future. That means thousands of jobs secured in the North East and across the UK for years to come. This is only the start. Our Plan for Change puts more money in working people’s pockets, secures home-grown energy and protects billpayers, so tyrants like Putin can’t attack the living standards of working people again.”
Chris Daykin, Director, Northern Endurance Partnership, said: “This is a landmark moment in the development of CCS infrastructure and the UK’s ambition to reach net zero emissions by 2050. With joint backing from shareholders and the UK Government, Northern Endurance Partnership is entering its execution phase ahead of start-up expected in 2028”.
Energy Secretary Ed Miliband said: “This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East. “This is the Government’s mission to make the UK a clean energy superpower in action- replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”
Northern Endurance Partnership
NEP is the CO2 transportation and storage provider for the East Coast Cluster (ECC).
The NEP infrastructure will initially serve the Teesside-based East Coast Cluster carbon capture projects – NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture – that were selected for first connection to NEP by DESNZ in March 2023 as part of the UK’s cluster sequencing process for carbon capture usage and storage (CCUS).
NEP has been granted the first Carbon Dioxide Transport and Storage Licence in the UK under the Transportation and Storage Regulatory Investment (TRI) regime – a regulatory regime that unlocks private investment in long-term infrastructure by providing incentives and protections in developing a nascent CCUS market in the UK.
NEP has also been granted a CO2 Storage Permit by the North Sea Transition Authority which will enable CO2 injection and storage to commence when the infrastructure is complete.
NEP and Net Zero Teesside Power have confirmed contracts with the following engineering, procurement, and construction contractors:
bp, Equinor, and TotalEnergies are NEP shareholders.
Quotes
Louise Kingham, bp’s head of UK, said: “These projects represent another step forward for bp’s overall investment plans in the UK. They harness the skills, talent and determination of an established industrial region and apply them to the UK’s own energy transition. We’re proud of the potential of these projects to help stimulate economic growth by supporting thousands of jobs and helping UK companies prosper through the vast supply chains involved, while creating the infrastructure to help major industrial companies with their decarbonization plans.”
Alex Grant, UK Country Manager, Equinor, said: “The UK is a key market for Equinor and we have a history of delivering significant energy provision along its East Coast, transitioning from traditional oil and gas demand to renewables and low carbon options including CCS and hydrogen. This is a major step for both Equinor and the UK, helping to decarbonise the country’s industrial heartlands and achieve its net zero ambitions whilst providing jobs and supply chain opportunities. We look forward to working with the new Government to deliver further low carbon projects across in the UK.”
Arnaud Le Foll, Senior Vice President New Business – Carbon Neutrality, TotalEnergies, said: “We are very pleased to be a part of this significant moment in the development of the UK’s CCS industry. NEP is a frontrunner project and we look forward to transporting and permanently storing CO2 from one of the UK’s largest industrial regions. Our stake in NEP contributes to TotalEnergies’ objective to develop significant CO2 storage capacities in the North Sea, where we can leverage our expertise in operations and geosciences.”
Anna Turley, Labour MP for Redcar, said: “I’m delighted that today this major deal has been signed to bring jobs and opportunities in carbon capture to the people of Redcar and Cleveland. We have the skills, the talent and the infrastructure to lead Britain’s new green industrial renaissance and be at the forefront of the global transition to NetZero. Here on Teesside we are leading the way in industrial decarbonisation and I’m delighted this Labour government is backing us to the hilt.”
Chris McDonald, Labour MP for Stockton North, said: ‘This is a monumental moment for Teesside and a project of national and international importance. Net Zero Teesside is more than just a local initiative—it’s a symbol of our region’s unmatched engineering heritage and our readiness to lead the world in tackling the climate crisis. Eyes from across the globe will be on Teesside as we deliver this crucial step in the green industrial revolution.’
Andy McDonald, Labour MP for Middlesbrough and Thornaby East, said: “Net Zero Teesside is the single biggest investment in Teesside in our history. It is worth £4bn, will create 3,000 construction jobs and 1,000 well paid permanent jobs and will make our area leaders in the industries of the future. The importance of this announcement cannot be overstated. Just as we have led the industries of the past with iron and steel, we now look forward with optimism to our future as a global leader in clean technologies. In partnership with business, the government has made sure that the final investment decisions of both government and private partners have been fully aligned, so as to secure the programme and with it the many, many highly skilled well-paid work that will flow for Tees Valley workforce. Securing Net Zero Teesside is a massive achievement for the economy of the Tees Valley and is critical to the UK meeting its decarbonisation objectives. To see this signed, sealed and delivered is incredible.”
Diana Johnson, Labour MP for Hull North and Cottingham, said: “We know that the Humber Energy Estuary, like Teesside, is an essential part of achieving Net Zero and economic growth built around investing in those skilled jobs of the future. I am therefore delighted that the Humber Carbon Capture Pipeline is proceeding to the next stage of development.”
Luke Myer, Labour MP for Middlesbrough South and East Cleveland, said: “This is a landmark moment for Teesside and the wider region. It means billions of pounds of investment and over 4,000 jobs in the green industries we need. Thank you to all those involved in getting this project to Government, and thank you to Government for listening to us and signing it off. It’s clear that this Government is moving quickly to deliver for a sector previously beset by years of delay. The importance of this moment cannot be overstated. Teesside is back – stronger, cleaner, and ready to lead the world once again!”
Jonathan Brash, Labour MP for Hartlepool said: “This is a massive moment for our region and a huge boost for jobs and growth in our area. I’ve always said that towns like Hartlepool, which used to be powerhouses of the British economy, can be again with the advent of new industries and technologies. Working with fantastic partners like BP we can unlock our region’s limitless potential and become the epicentre of the UK as a green energy superpower.”
Sam White, managing director, natural resources at Costain, commented: “Today’s announcement is a significant step towards UK decarbonisation. We’re working with Net Zero Teesside Power and the Northern Endurance Partnership, its partners and the supply chain to deliver a world-class CO2 gathering network, utilising our first-class capabilities in consultancy, engineering and construction.”
Arnaud Pieton, CEO of Technip Energies, commented: “We are excited to partner with GE Vernova and Balfour Beatty on the first-of-its kind Net Zero Teesside Power project. This award confirms Technip Energies’ leading position as a provider of state-of-the-art integrated CCUS solutions. I would like to thank Net Zero Teesside Power for their trust. This groundbreaking project represents a significant milestone in our collective efforts to advance carbon capture technology at scale and support the UK’s ambitious climate goals through low carbon power generation from gas combined with renewables. By leveraging our Canopy by T.EN™ solution powered by Shell’s CANSOLV CO2 Capture System, we aim to set a new standard for low-carbon power generation. This project not only underscores our commitment to innovation and sustainability but also highlights the critical role of collaboration in driving the energy transition forward.”
Maví Zingoni, CEO, Power at GE Vernova commented: “We believe CCUS technology can be crucial to help decarbonise the planet, and we welcome the commitment from the UK government to invest in its implementation as well as NZT Power’s trust in our technology. Flagship projects like Net Zero Teesside Power can give the industry foundations to grow. We look forward to powering the station with our advanced H-Class combined cycle technology, as well as proceeding with the first commercial use of our Exhaust Gas Recirculation system and integration technologies, which aim to support carbon abatement by boosting the efficiency and performance of carbon capture.”
Leo Quinn, CEO of Balfour Beatty Group, said: “Net Zero Teesside is a transformational project, underpinning the UK’s transition to cleaner and greener energy consumption and driving regional economic growth in Northeast England. Today’s announcement takes us one step closer to realising this ambitious scheme, which will demonstrate collaboration at its finest and see us unite our unique strengths together with Technip Energies’ world-leading engineering and technology integration skills, Shell’s state-of-the-art CANSOLV* CO2 Capture technology and GE Vernova’s unparalleled power generation knowledge.”
Elise H. Nowee, President of Shell Catalysts & Technologies, said: “Being selected as the carbon capture technology provider for Net Zero Teesside Power reflects the proven capabilities of Shell’s CANSOLV* CO₂ technology in delivering substantial, reliable emissions reductions at scale. This project also highlights the strength of our alliance with Technip Energies, which combines Shell Catalysts & Technologies’ expertise in technology licensing with Technip Energies’ excellence in project integration and delivery. Together, we are addressing the growing demand for scalable post-combustion carbon capture solutions. With the potential to capture up to 2 million tonnes of CO₂ annually, Net Zero Teesside Power marks a critical milestone in the UK’s journey toward net zero.”
Luana Duffé, Executive Vice President, New Energy at TechnipFMC, commented: “We are excited to see this development move forward, as it is a significant milestone for the United Kingdom and our Company. TechnipFMC will leverage its industry-leading subsea expertise and proprietary technologies to deliver the first all-electric iEPCI™ for carbon transportation and storage.”
Craig Shanaghey, Executive President of Projects at Wood, said: “As a U.K. headquartered company, continuing to support a world-leading decarbonisation project in our own backyard is monumental. Our integrated team working closely with Net Zero Teesside Power and Northern Endurance Partnership is leading the energy transition by designing and advancing the energy ecosystem. We are proud to be a strategic ally through the full lifecycle of this project from inception to operation.”
Helen Coleman, Managing Director of Genesis, commented: “Genesis is proud to announce the commencement of the NEP Offshore Systems Engineering Services Project. This significant endeavor highlights our premier capabilities in CO2 transport and subsea engineering, reinforcing our role as trusted advisors to our clients throughout the entire project lifecycle. With over 35 years of industry experience, Genesis offers comprehensive and innovative systems engineering services. We look forward to strengthening our collaboration with bp to ensure the safe and successful execution of the NZT & NEP Projects.”
Joanne Leng MBE, Chief Executive, NOF, said: “It is fantastic news today from bp to see the Net Zero Teesside Project reach such a momentous milestone. This news will be welcomed by the supply chain in the region as it means moving into the execution phase which will bring real opportunities, contracts and jobs. NOF stands ready to support the project and all those contractors and suppliers who are involved both now and in the future.”
Olivia Powis, Chief Executive Officer at the CCSA said: “News of financial close for NZT Power and NEP is fantastic for both the CCUS industry and in tackling climate change. Reducing emissions from power generation and industrial processes is of vital importance to reaching the ambitious targets set by the Government to decarbonise heavy industry and the power system. Gas power plants with carbon capture technology are designated as a crucial source of low carbon energy and will enable more renewables onto the system. NZT Power will provide stable, flexible electricity generation to the Teesside industries that rely on low carbon energy sources for decarbonisation. Investing in the CO2 transport and storage infrastructure will send the signals to investors and other capture projects that the UK is serious about meeting our net zero targets and providing our industries with a clear route to decarbonisation. Both the Government and industry now need to ensure this momentum continues, maximising the opportunity that CCUS presents to decarbonise our industries, meet net zero targets and invest in low carbon technologies and skills. This is done by continuing to prioritise the deployment for the clusters and projects that will follow Teesside. This will drive investment in the supply chain, creating and protecting vital jobs. Failure to do so will make it significantly difficult to meet net zero targets.”
Mike Biddle, Executive Director Net Zero, Innovate UK said: “This is a milestone which represents a significant step towards decarbonising industry and achieving net zero emissions. The decision to move to the execution phase of these projects underlines the importance of innovation, collaboration and strategic funding to accelerate the development of low-carbon technology and infrastructure. Net Zero Teesside and the Northern Endurance Partnership projects will reduce emissions, increase energy security, and enable clean growth and employment in the North East and across the UK – we are proud to have supported their development.”
Daren Smith, Chairperson for the Industrial Net Zero Leadership Group, said “The announced financial close and commencement of execution phase for both NZT Power and NEP is excellent news, and brings the UK’s Net Zero ambitions one step closer to realisation. The Tees Valley is ideally placed to locate these critical projects having both the industrial heritage and natural geology. These projects will support the transformation of the Tees Valley into a world class net zero industrial cluster, bringing much needed skilled jobs and wealth generation to the area.”
Joanne Fryett, Chief Executive, NEPIC, said: “I am delighted to hear of the latest announcements giving the green light for Net Zero Teesside Power and the Northern Endurance Partnership, it is welcomed news from us here at NEPIC and from our members throughout the Tees Valley and wider North East. This is the catalyst that we have been waiting for to support industry, as we collectively aim to deliver our Net Zero targets throughout the UK. The announcement truly places Tees Valley as a leader in carbon capture technology and innovation.”
Clare Jackson, CEO of Hydrogen UK, said: “We’re thrilled to see the Northern Endurance Partnership and Net Zero Teesside reach financial close, in what is a huge development for clean energy in the North.
By advancing these flagship projects, we are setting a strong foundation for a net zero future, creating thousands of jobs in Teesside, and reinforcing the UK’s position as a leader in clean energy technologies”
