Net Zero Teesside Power Project

Executive Overview

Net Zero Teesside Power (NZT Power) is a 742 MW combined-cycle gas turbine (CCGT) power station with integrated post-combustion carbon capture and storage (CCS), currently under construction in Teesside, northeast England. Developed as a joint venture between bp (75%) and Equinor (25%), the project aims to be the world's first commercial-scale gas-fired power station with CCS. Financial close and Final Investment Decision (FID) were reached in December 2024, following the UK Government's £21.7bn commitment to carbon capture projects. Construction began in mid-2025, with commercial operations targeted for 2028. The plant will be sited on the former SSI steelworks in Redcar, on the South Tees Development site.

How It Works & Technology NZT Power integrates a GE Vernova 9HA.02 gas turbine — an advanced H-class machine — with a steam turbine, generator, and heat recovery steam generator (HRSG), plus a proprietary Exhaust Gas Recirculation (EGR) system designed to increase the CO2 concentration in the flue gas for more efficient capture. The carbon capture component uses Technip Energies' Canopy C+ solution, powered by Shell's CANSOLV CO2 Capture System — a proven amine-based post-combustion capture technology. The system targets a carbon capture recovery rate of approximately 95%, capturing up to 2 million tonnes of CO2 per year. Captured CO2 is conditioned and compressed on-site before entering the Northern Endurance Partnership's (NEP) pipeline system — a 145 km offshore gathering network — for permanent geological storage in the Endurance saline aquifer approximately 1,000 metres beneath the North Sea seabed. The plant will generate flexible, dispatchable low-carbon power equivalent to the average electricity needs of more than 1 million UK homes.

Project Delivery & Contractors The EPC contract for the onshore power, capture and compression scope is led by a consortium of Technip Energies, GE Vernova, and Balfour Beatty, with Shell Catalysts & Technologies as the technology licensor. The Technip Energies-led consortium received Full Notice to Proceed in December 2024. Balfour Beatty was formally awarded an £833m construction partner contract in June 2025 — scope includes the CCGT plant build and the post-combustion carbon capture system. At peak construction, Balfour Beatty will employ approximately 1,500 workers, with at least 5% apprentices and graduates. Additional contractors include Costain (onshore CO2 gathering system and gas connection), a partnership of Marubeni-Itochu Tubulars, Liberty Steel Hartlepool, and Corinth Pipeworks (linepipe — onshore and offshore), Sulzer (proprietary internals for the combined-cycle unit), DNV (quality assurance services), and Honeywell (integrated automation and safety systems). Total EPC contract value across NZT Power and the associated NEP infrastructure is approximately £4bn across eight contract packages to nine contractors. Liberty Steel Hartlepool began manufacturing pipelines for the onshore and offshore CO2 infrastructure in March 2025.

Commercialization & Revenue Structure NZT Power will operate under a Dispatchable Power Agreement (DPA) — a contractual framework adapted from the UK's Contracts for Difference (CfD) standard terms, modified to enable natural gas-fired power with CCS to play a mid-merit role in electricity dispatch. The DPA displaces unabated thermal generation and provides revenue certainty for the capital-intensive CCS infrastructure. The project received £229m in public and private funding in March 2021 through the Industrial Decarbonisation Challenge under the UK Research and Innovation's Industrial Strategy Challenge Fund (ISCF), with additional awards of £28m to NZT Power and £24m to NEP in December 2023. NatWest joined the financing as a lender, and Societe Generale served as exclusive financial adviser. The project is expected to create and support over 3,000 construction jobs and approximately 1,000 operational jobs annually through 2050, contributing up to £300m per year in Gross Value Added (GVA) to the regional economy.

Strategic Context NZT Power is the anchor project of the East Coast Cluster (ECC), one of the UK Government's first two selected CCS clusters. The Northern Endurance Partnership — a JV of bp (45%), Equinor (45%), and TotalEnergies (10%) — provides shared CO2 transport and storage infrastructure serving NZT Power and two additional Teesside carbon capture projects: H2Teesside and Teesside Hydrogen CO2 Capture. The Endurance aquifer has estimated storage capacity of up to 1 billion tonnes of CO2, with initial throughput capacity of 4 million tonnes per year. NEP has also received UK Government approval to advance development engineering for the Humber Carbon Capture Pipeline (HCCP), which would extend the CO2 infrastructure to serve industrial emitters in the Humber region. The project represents a first-of-its-kind integration of gas-fired power generation with CCS at commercial scale — positioning the UK as a potential leader in the technology and providing a replicable model for decarbonised dispatchable power globally.