Equinor and BP have been given a go-ahead to kick off the delivery of the Net Zero Teesside project.
HM Treasury has signed off a financial support package enabling construction to begin as soon as possible. Contractors have been instructed to start works by the end of this year, with the facility scheduled to become operational in 2027.
The joint venture is set to deliver the world’s first industrial-scale carbon capture, utilisation and storage facility, valued at around £4bn. The proposed power station will generate up to 860MW of low-carbon electricity – enough to power up to 1.3m homes in the UK.
Under the plan, up to 2m tonnes of CO2 emissions from the power station will be captured each year instead of released into the atmosphere. It will then be transported through the dedicated pipeline to a geological storage site under the North Sea, where it will be permanently and safely stored.
Chris Musgrave, chairman of Teesworks, the public-private initiative behind the UK’s largest freeport and freeholder of the development site, said: “The government’s support for Net Zero Teesside means real opportunities for local people – creating jobs, attracting investment and making our region a leader in clean energy.
“Over the past few years, we’ve been clearing the former steelworks and preparing the site for projects like this.”
Ben Houchen, mayor of Tees Valley, said: “Teesworks has already transformed the site, secured billions of pounds of private investment and created thousands of local jobs.
“Teesside is no longer seen as an old industrial heartland in decline – we are now a global player leading the world once again.”
Image © Teesworks
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