10 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.
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.”
ENDS
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.
Stakeholder quotes
Shareholders
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.”
Contractors
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.”
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