Balfour Beatty and Costain secure positions in Teesside’s £4 billion power project


Balfour Beatty and Costain are part of the contractor team chosen to advance plans for the UK’s inaugural commercial-scale gas-fired power station with carbon capture.

Net Zero Teesside Power (NZT Power), a collaboration between BP and Equinor, has chosen contractors for eight segments of its £4bn initiative.

Expected to power approximately 1.3 million UK homes and capture up to two million tonnes of CO2 annually, NZT Power has issued a letter of intent to Balfour Beatty, Technip Energies, and GE Vernova for the £1.5bn onshore power, capture, and compression component.

Costain will handle the construction of the onshore CO2 gathering system and gas connection, while Saipem has been selected for the offshore pipeline and associated facilities.

TechnipFMC will provide the offshore subsea injection system, Alcatel Submarine Networks will manage power and communications cables, and Marubeni-Itochu Tubulars Europe Plc will deliver the linepipe with support from Liberty Steel Hartlepool, Corinth Pipeworks, and Eisenbau Kramer.

Genesis will oversee offshore systems engineering.

Ian Hunter, Managing Director of Net Zero Teesside Power, expressed optimism, stating, “The selection of contractors marks a significant milestone for Net Zero Teesside Power. We have enlisted top-tier partners with the expertise to deliver, aiming for a final investment decision by September 2024 or earlier, followed by constructive collaboration during the construction phase.

Teaming up with Technip Energies and GE Vernova, Balfour Beatty is set to construct a combined-cycle plant, seamlessly integrating a carbon capture facility. This endeavor will utilize Technip Energies’ Canopy by T.ENTM solution, driven by Shell Cansolv CO2 capture technology.

Employing modular construction methods, Balfour Beatty will prefabricate mechanical and electrical equipment, as well as plant rooms, in an off-site factory environment.

Leo Quinn, CEO of Balfour Beatty, remarked, “This announcement brings us closer to realizing one of the world’s first large-scale gas-fired power stations with carbon capture. It’s a significant step towards providing the essential infrastructure for the UK’s transition to net zero. With our leading capabilities and proven track record, alongside Technip Energies and GE Vernova, we’re demonstrating that the UK is poised to lead in decarbonizing our industrial footprint.”

Arnaud Pieton, CEO of Technip Energies, commented, “Our selection for the Net Zero Teesside Power project underscores Technip Energies’ growing role as an integrated CCUS solutions provider. By capturing up to 2 million tonnes of CO2, we’re tackling the challenge of scale and delivering sustainable energy at a large scale.”

Sam White, Managing Director for Natural Resources at Costain, added, “This award highlights Costain’s position as a leading provider for the UK’s energy transition. Having completed the FEED stage, we’re committed to supporting bp in decarbonizing the local energy supply and advancing innovative carbon capture and storage solutions.”

The selection of contractors follows the recent approval of the development consent order by Claire Coutinho, Secretary of State at the Department for Energy Security & Net Zero, with the project shortlisted for UK government funding. Final contract awards are contingent upon regulatory clearances and final investment decisions, anticipated by September 2024.

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