Balfour Beatty has been awarded a £833m contract to build what it aims to be the world’s first gas-fired power station with carbon capture and storage at Teesside.
It will work with French engineering company Technip Energies and energy equipment manufacturer GE Vernova to construct the largescale combined cycle gas-powered generation plant for Net Zero Teesside Power, a joint venture between BP and Equinor.
Balfour Beatty will build the post-combustion carbon capture system, which is expected to capture up to two million tonnes of CO2 per year.
Captured emissions will then be compressed and fed directly into the offshore pipeline, where they will be stored under the North Sea by the Northern Endurance Partnership – a joint venture between BP, Equinor and Total Energies set up to develop CO2 transportation and storage infrastructure for the East Coast Cluster in the UK.
Upon completion, it is expected that the new power station will produce up to 742MW of low-carbon power.
Leo Quinn, Balfour Beatty Group’s chief executive, said: “Net Zero Teesside Power is an ambitious scheme, forging the path towards the sustainable infrastructure of the future and positioning the UK as a leader in cleaner, greener energy consumption.
“The scheme will not only be a critical driver in achieving net zero, but will also play a key role in boosting regional economic growth in the north-east of England, generating thousands of employment opportunities both in the immediate term and in the future.”
The contract follows the government’s pledge last year to support carbon capture projects with £21.7bn.
Main construction is expected to start later this year. Completion is set for 2028.
