Balfour and Costain win place on £4bn carbon capture project


Construction contracts worth around £4 billion have been awarded to nine specialist contractors for one of the world’s first commercial scale gas-fired power stations with carbon capture. 

Credit: Net Zero Teesside Power.

Eight packages covering engineering, procurement, and construction for the new 860 MW plant on Teesside have been distributed by Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP). 

Up to 2 million tonnes of CO2 per year could be captured at the plant and then transported and stored by the NEP in sites beneath the North Sea. 

More than 3,000 construction jobs could also be created, with around 1,000 required annually for operations. 

Packages awarded and contractors 

  • Onshore power, capture and compression: Technip Energies and GE Vernova consortium, with Balfour Beatty as construction partner and Shell as technology licensor 
  • Onshore CO2 gathering system and gas connection: Costain 
  • Linepipe – onshore/offshore: Marubeni Europe with Liberty Steel Hartlepool, Corinth Pipeworks and Eisenbau Krämer as pipe-mills 
  • Offshore pipeline, landfalls, onshore outlet facilities and water outfall: Saipem 
  • Offshore subsea injection system: TechnipFMC 
  • Power and communications cable: Alcatel Submarine Networks 
  • Offshore systems engineering: Genesis 
  • Integrated project management team: Wood 

Engagement with local and regional supply chains will take place over the coming months. 

Final contract award is subject to regulatory clearances and final investment decisions (FID) being taken in September or sooner. 

Following positive FID, the projects would be aiming for first commercial operations from 2027. 

Credit: Net Zero Teesside Power.

Ian Hunter, managing director at Net Zero Teesside Power, said: “The selection of contractors is a major step forward for Net Zero Teesside Power.  

“We have selected world-class partners who have the experience and capability needed to deliver.  

“We aim to take final investment decision in September 2024 or before, after which we’d look forward to working with our EPC partners through the construction phase.” 

Ben Houchen, Tees Valley mayor, added: “This would be the single biggest investment in Teesside since ICI. It cannot be understated the transformational economic impact this will have right across Teesside, Darlington and Hartlepool.  

“Our area is now the world-leading centre in developing the clean, green industries of the future, which most importantly will deliver the highly skilled well-paid jobs of the future.  

“This investment of £4bn will support businesses up and down the local supply chain with companies like Hartlepool-based Liberty Steel already netting a multi-million-pound contract.”   

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