September 28th 2023
Groundbreaking work has begun at the former Redcar steelworks which will become the home to the world-leading Net Zero Teesside Power project – an important moment for Teesworks, Teesside and the UK’s low carbon ambitions.
The preparatory work by Teesworks is underway following the recent signing of an option-for-lease agreement between NZT Power partners bp and Equinor, and Teesworks.
The deal could see the multi-billion pound scheme become an anchor tenant at Teesworks – the UK’s largest industrial zone.
NZT Power aims to be the world’s first gas-fired power station with carbon capture and storage capability, and will help drive Teesside’s aim to become the UK’s first decarbonised industrial cluster as early as 2030.
To mark the major development, Tees Valley Mayor Ben Houchen was joined by senior representatives from bp, NZT Power, the Northern Endurance Partnership, and local business and political stakeholders.
NZT Power could create and support up to 4,000 jobs during construction and operations and add up to £300million to the economy per year – including millions of pounds in business rates to Redcar and Cleveland Borough Council.
The proposed power station will generate up to 860 megawatts of low carbon electricity- enough to power up to 1.3 million UK homes. Up to two million tonnes of CO2 emissions from the power station will be captured each year – emissions which would otherwise be released into the atmosphere.
The captured CO2 will then be transported by the Northern Endurance Partnership by pipeline to a geological storage site under the North Sea, where it will be permanently and safely stored.
Net Zero Teesside Power is part of the East Coast Cluster, which aims to serve the Teesside and Humber regions and stands ready to remove around 50% of the UK’s total industrial cluster CO2 emissions.
The Northern Endurance Partnership will provide the CO2 transportation and storage infrastructure that will serve East Coast Cluster carbon capture projects – including NZT Power and a wide range of other carbon-emitting businesses across Teesside and the Humber.
A final investment decision will be taken by NZT Power partners in 2024, with the project aiming for commercial operations from 2027.
The remediation and infrastructure work currently underway is being funded by Teesworks Ltd’s joint venture partners.
Martin Corney, Teesworks CEO, said: “We’re delighted to take this crucial next step which paves the way for the world-first Net Zero Teesside project, which pioneers the advancement of the globe’s low carbon industries on our doorstep, and help future tenants achieve their own low carbon ambitions.
“Now that all the structures are down, we can get on with the vital remediation work needed to make this project a reality.”
Tees Valley Mayor Ben Houchen said: “Our joint venture partners have done another brilliant job of getting this agreement over the line, which will kick off the next phase of the project.
“The thousands of construction jobs this huge and important project will bring are closer than ever as opportunities for local businesses to get involved continues to ramp up.”
Andy Lane, vp hydrogen and CCUS, bp said: “Teesside is an ideal place to decarbonize industry and power through the deployment of CCUS, and bp and our partners, Equinor, are incredibly proud to bring Net Zero Teesside Power to Teesworks . The work being undertaken by Teesworks is a crucial milestone and paves the way for delivery of our project that will provide enough low carbon electricity to power up to 1.3 million UK homes”.
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