Balfour in race for £1bn Teesside carbon capture scheme

Aaron Morby 6 months ago
Share

Energy giant BP has awarded two front end engineering and design contracts for its planned £1bn-plus power station and carbon capture and storage scheme on Teesside.

Project will put Teesside on the map as a leader in the decarbonisation industry
Project will put Teesside on the map as a leader in the decarbonisation industry

Net Zero Teesside Power’s carbon capture, utilisation and storage (CCUS) project is a world first for a new gas-fired power station with a built-in process to capture and pump waste CO2 into a North Sea abandoned gas field cluster.

The first contracts for a design and development competition have been awarded to two engineering consortiums.

Front End Engineering Design dual contract awards


  • Technip Energies and General Electric consortium – led by Technip Energies and including Shell and Balfour Beatty
  • Aker Solutions Doosan Babcock and Siemens Energy consortium – led by Aker Solutions and including Aker Carbon Capture

The design contracts involve both the flexible gas-fired power station with CCUS capabilities and the Northern Endurance Partnership’s facilities to gather and compress CO2 and export it offshore for storage.

The scheme aims to be up and running within the next five years and could create 5,500 direct jobs during its construction.

Over the next 12 months the bid teams will draw up comprehensive FEED package, led from their UK offices.

They will then submit proposals for the execution phase. As part of the final investment decision expected in 2023, a single consortium will be selected to take the project forward into construction.

The scheme is the Government’s preferred project to lead the UK’s net zero ambitions and will see up to 10million tonnes of COemissions captured each year – equivalent to the emissions associated with the annual energy use of three million homes – and store it under the North Sea via a series of pipes.

Tees Valley Mayor Ben Houchen said: “Just days after local firm Thompsons carried out a large-scale explosive demolition project, and we lodged plans to clear the site on Teesworks where Net Zero Teesside Power will sit, we now have this incredibly welcome news.

“This announcement shows how fast our plans are accelerating to deliver this game-changing facility on Teesside. Net Zero Teesside Power is a flagship project to put our region front-and-centre in delivering the cleaner, safer and healthier industries of the future.

“It has been recognised by Government as a key project needed to drive the UK’s net zero ambitions and it will also put us on the map for other businesses looking for locations for their own low-carbon projects. What’s more, it’ll do all this while creating the thousands of well-paid, good-quality jobs people from across Teesside, Darlington and Hartlepool people deserve.”

Louise Kingham, bp’s UK head of country and senior vice president of Europe said: “Moving to Front End Engineering Design is a major step forward for Net Zero Teesside Power and the development of the Northern Endurance Partnership.

“This first-of-a-kind project has the potential to deliver enough low carbon, flexible electricity to power around 1.3 million homes, and can help secure Teesside’s position at the green heart of the country’s energy transition.”

Latest news

Ten demolition firms named in cartel probe

Biggest names in demolition face massive fines over "unacceptable" behaviour on 19 contracts worth over £150m
3 days ago

Imtech vows to avoid big resi jobs after return to profit

Engineering services arm puts trio of loss-making residential jobs behind it
3 days ago

Sisk replaces Morgan Sindall on £1bn Midlands Highways Alliance

Four firms secure places in Midlands framework renewal race
4 days ago

Winvic wins Bristol Redcliff Quarter 468 flats job

Grainger buys planned build to rent project and brings in Winvic to start this Autumn
3 days ago

Peel takes on Wirral Waters after Urban Splash modular collapse

Developer is reviewing whether to return to traditional build methods after modular specialist collapse
3 days ago

Kier launches £80m JV to build 2,000 homes by 2027

Property arm JV with Lloyds fund to develop housing on urban brownfield sites
4 days ago

Mace chief Reynolds replaces Mitchell at CLC

Mark Reynold takes over as co-chair of the Construction Leadership Council
4 days ago

Cost inflation forces bid rethink for £200m M5 junction 10

ECI simplified and amendments made to reflect rising construction costs
4 days ago

Wages among key trades keep pace with cost of living rise

Self employed plasterers, plumbers, roofers and scaffolders enjoy wage rises ahead of annual inflation rate
4 days ago

Midgard drives recovery at JRL Group

Revenue tops £600m again at diversified contractor
4 days ago

Green light for £100m Norwich A47 dualling

Galliford Try to start work in October on 2.6km dualling between Norwich and Acle Straight
4 days ago

Design change sees 70,000 cubic metres of concrete cut on HS2 stretch

Revamp of Staffordshire cutting will mean 6,700 fewer concrete mixer lorry loads
4 days ago

Subcontractors and suppliers wanted across the Midlands

Constructionline Meet the Buyer event in Derby: Register now
5 days ago

Contract race starts as cost of giant aqueduct job hits £1.75bn

United Utilities looking to shortlist three bidders for Haweswater Aqueduct Resilience Programme
5 days ago

M&S blasts Gove after Oxford St rebuild plan called in

Retailer "bewildered" after Housing Secretary steps-in over embedded carbon concerns
6 days ago

Springfield buys rival Scottish house builder for £46m

Mactaggart & Mickel Group takeover deal includes 17 sites with planning for 700 homes
5 days ago

Costain bets on hydrogen infrastructure

Consortium launches to develop hydrogen infrastructure for shipping and aviation in the Westcountry
5 days ago

Caddick starts on Star Wars bar office scheme

Host of employee-friendly features on new building at Crewe Business Park
5 days ago

Murphy to host virtual recruitment day

Specialist engineering and civils contractor opens doors online to potential new staff: Register now
6 days ago

Plans in for Isle of Dogs 52-storey resi tower

460 flats skyscraper to replace offices at 4 & 5 Harbour Exchange Square
6 days ago

Van Elle seals piling deal on Transpennine Route Upgrade

Firm appointed to the piling framework for the West of Leeds section
6 days ago

Demolition firm fined £5,000 after fatal platform fall

Contractor went into administration following death plunge at Scottish Power site
6 days ago

Modular specialist TopHat to open vast housing factory

Goldman Sachs-backed house builder to open Europe's largest modular factory in Corby
7 days ago

Asphalt giants make low carbon standard for road mixes

Tarmac and Aggregate Industries make warm mix asphalt new standard on highways jobs
7 days ago

Wates launches Retrofit brand for net zero work

Wates Retrofit to target domestic and non domestic clients
6 days ago

BAM wins £24m Wigan net zero carbon school

BAM has started enabling works at Fred Longworth High School development
6 days ago

Urban Splash modular failure to cost supply chain £12m

Suppliers left with mountain of worthless invoices following Urban Splash House collapse
7 days ago

Kier to trial hydrogen generators on site

Zero-emission generator to start trial on South West site
7 days ago

Hinkley Point remobilises to over 8,000 workforce – video

Construction work on second reactor achieves 20%-30% efficiency savings
7 days ago

Kier and Wates win £500m deal to expand six prisons

New houseblocks to be built at HMPs Bullingdon, Channings Wood, Elmley, Highpoint, Hindley and Wayland
1 week ago

Contractor services