Two bp-led low-carbon projects on Teesside shortlisted for UK Government support

Two bp-led low-carbon projects, Net Zero Teesside Power and H2Teesside, have been shortlisted by the Department for Business, Energy & Industrial Strategy (BEIS) as part of the UK Government’s CCUS cluster sequencing Phase-2 process. This decision makes the projects eligible to receive support from the Government’s £1bn CCS Infrastructure Fund (CIF) through new regulation to support low carbon industries. 

Both projects are part of the East Coast Cluster – covering projects in Teesside and the Humber region, both in north-east England – which was selected in October 2021 to be one of the UK’s first CCUS clusters in Phase-1 of the cluster sequencing process.  
 
The two projects can play an important role in generating thousands of skilled jobs in Teesside. NZT Power could support more than 3,000 jobs during construction and, once operational, around 1,000 jobs until 2050. H2Teesside could create 1,200 construction and 600 operational jobs by 2027.  
 
Louise Kingham, bp’s UK head of country and senior vice president of Europe, said: “bp is backing Britain and our plans for hydrogen, power and CCS in Teesside are key in delivering our commitment. The homegrown energy produced at NZT Power and H2Teesside will boost the UK’s energy security and delivery of its bold net zero transition plans. The jobs that the projects will create, together with our investment in green skills development and education initiatives, will support Teesside’s transformation into a world-class, low carbon energy hub.”     
 
bp is committed to working in partnership with the local community and educational institutions to support Teesside’s transformation. It is supporting and investing in the development of a Clean Energy Education Hub at Redcar & Cleveland College, which began construction in June. This will train school leavers, apprentices and adults in the skills needed for jobs in hydrogen and CCUS projects – as well as in the wind and solar power industries and other roles.  
 
In partnership with the College, bp will also support the Hub’s programmes in educating primary, secondary and college students, helping to inspire young people across Teesside to pursue opportunities in low carbon energy careers.    
 

About Net Zero Teesside Power (NZTP) 

NZTP is a joint venture between bp and Equinor, with bp as operator. The natural gas-fired power plant will be fully integrated with carbon capture. It could generate up to 860 megawatts of low carbon power, sufficient to power up to 1.3m homes per year, equivalent to close to 5% of all homes in the UK. NZTP’s carbon capture infrastructure could capture up to two million tonnes of CO2 annually, sending it offshore for permanent storage in the Northern Endurance Partnership’s CCUS facilities (NEP). 
 

About H2Teesside 

H2Teesside aims to be one of the UK’s largest blue hydrogen production facilities, targeting 1GW of hydrogen production by 2030, 10% of the UK government’s hydrogen target for 2030. It will produce hydrogen from natural gas and capture and send for storage via NEP the CO₂ produced – approximately two million tonnes a year.  

Notes to Editors:  

Jobs estimate are the result of independent analysis conducted by Vivid Economics and submitted as part of the separate H2Teesside and Net Zero Teesside Power bids to the BEIS Phase 2 CCUS Cluster Sequencing Process submitted in January 2022.