[London, 10 December] – Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) have reached financial close and now move into execution phase. This represents a significant milestone for the carbon capture, utilisation and storage (CCUS) industry in the UK.
By deploying this vital technology, heavy industries will be able to decarbonise their operations, while low-carbon dispatchable power is generated for when the wind isn’t blowing and the sun isn’t shining.
Importantly for industrial heartlands such as Teesside, CCUS will create thousands of new low-carbon jobs and establish the region as a globally-competitive low carbon hub for industry and innovation.
NZT Power is set to be the world’s first commercial scale gas-fired power station with carbon capture technology. It is at the heart of plans to decarbonise Teesside, where heavy industries will share the carbon dioxide (CO2) transportation and storage infrastructure, developed by the Northern Endurance Partnership (NEP), to serve the East Coast Cluster.
The power station will generate up to 742 MW of electricity, which equivalent to the average annual electricity requirements of more than 1 million UK homes, with up to two million tonnes of CO2 captured and stored a year. This is a significant contribution toward the UK reaching its net zero by 2050 target.
News of financial close for NZT and NEP comes at a crucial time as the UK announced at COP29 last month a target of cutting emissions by 81% by 2035, while the Prime Minster last week recommitted to the clean power by 2030 target.
If the UK is to meet these targets, in line with the Climate Change Committee (CCC) ambition for the UK to capture and store 20-30 million tonnes (Mt) of CO2 per year by 2030 to meet our Carbon budgets, CCUS needs to be deployed at scale. The CCSA urges the Government to continue to prioritise clusters and projects, particularly as countries around the world are competing with the UK for investment to build CCUS.
Olivia Powis, Chief Executive Officer at the CCSA said:
“News of financial close for NZT Power and NEP is fantastic for both the CCUS industry and in tackling climate change. Reducing emissions from power generation and industrial processes is of vital importance to reaching the ambitious targets set by the Government to decarbonise heavy industry and the power system. Gas power plants with carbon capture technology are designated as a crucial source of low carbon energy and will enable more renewables onto the system. NZT Power will provide stable, flexible electricity generation to the Teesside industries that rely on low carbon energy sources for decarbonisation. Investing in the CO2 transport and storage infrastructure will send the signals to investors and other capture projects that the UK is serious about meeting our net zero targets and providing our industries with a clear route to decarbonisation.”
“Both the Government and industry now need to ensure this momentum continues, maximising the opportunity that CCUS presents to decarbonise our industries, meet net zero targets and invest in low carbon technologies and skills. This is done by continuing to prioritise the deployment for the clusters and projects that will follow Teesside. This will drive investment in the supply chain, creating and protecting vital jobs. Failure to do so will make it significantly difficult to meet net zero targets.”
Energy Secretary Ed Miliband said:
“This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East. This is the Government’s mission to make the UK a clean energy superpower in action- replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”
Ian Hunter, Managing Director, Net Zero Teesside Power, said:
“Today’s announcement is the culmination of years of work to make Net Zero Teesside Power a reality. As the project progresses into the execution phase, we look forward to delivering on our ambition to create and support thousands of jobs whilst generating flexible, dispatchable low-carbon power for the UK.”
Chris Daykin, Director, Northern Endurance Partnership, said:
“This is a landmark moment in the development of CCS infrastructure and the UK’s ambition to reach net zero emissions by 2050. With joint backing from shareholders and the UK Government, Northern Endurance Partnership is entering its execution phase ahead of start-up expected in 2028”.
Notes to Editors
Interview requests: To interview Olivia Powis, Chief Executive of the CCSA please contact press@ccsassociation.org
For media enquiries please contact Sara Price on 07825235313 / press@ccsassociation.org
Press Pack: Infographics and an animation accompany the press release for use. Download the press pack here.
CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).
The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.
The CCSA currently has over 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.
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