Two hugely important projects being launched by bp on Teesside have been given the green light by the Government.
The low-carbon projects will play an important role in generating thousands of skilled jobs in Teesside and are a vital part of the Teesworks site. 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.
After years of planning, partnerships and negotiation, they have now been shortlisted by the Department for Business, Energy & Industrial Strategy (BEIS) as part of the UK Government’s Carbon Capture, Utilisation and Storage plans.
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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 – which was selected in October 2021 to be one of the UK’s first CCUS clusters in Phase-1 of the cluster sequencing process.
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.”
Tees Valley Mayor, Ben Houchen said: “This is yet another major step forward for our Net Zero Teesside and bp hydrogen projects which have been confirmed today by Government.
“These two major projects will bring billions of pounds into the region, creating good-quality, well-paid jobs for local people while supporting the transformation of the Teesworks site.
“Importantly they will also help secure our energy sources here in Britain for the future so that we can better protect ourselves against rising prices driven by global events.”
bp - a major partner in the Northern Echo's Level Up campaign - 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.
Read more: Minister and bp back college plan for £3.2m Energy Education Hub
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 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.
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