Balfour Beatty and Costain land roles on Teesside’s £4bn power project

Net Zero Teesside Power (NZT Power), a joint venture between BP and Equinor, has selected contractors for eight packages of its £4bn project.

NZT Power is expected to generate electricity for around 1.3m UK homes and capture up to two million tonnes of CO2 per year.

Balfour Beatty, Technip Energies and GE Vernova have received a letter of intent for the £1.5bn onshore power, capture and compression element of the project.

Costain has been chosen to construct the onshore CO2 gathering system and gas connection.

Saipem has the offshore pipeline, landfalls, onshore outlet facilities and water outfall.

The offshore subsea injection system will be supplied by TechnipFMC.

Alcatel Submarine Networks will take care of the power and communications cable.

The linepipe, onshore and offshore, will be delivered by Marubeni-Itochu Tubulars Europe Plc with Liberty Steel Hartlepool, Corinth Pipeworks and Eisenbau Kramer as the nominated pipe mills.

Genesis has the offshore systems engineering.

Ian Hunter, managing director 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.”

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In partnership with Technip Energies and GE Vernova, Balfour Beatty will construct a combined-cycle plant, integrated with carbon capture plant using Technip Energies’ Canopy by T.ENTM solution powered by the Shell Cansolv CO2 capture technology.

Balfour Beatty will use modular construction techniques to build the M&E equipment and plant rooms off-site in a factory setting.

Balfour Beatty chief executive Leo Quinn said: “Today’s announcement takes us a step closer to realising one of the world’s first commercial scale gas-fired power stations with carbon capture. It’s a significant milestone in delivering the critical infrastructure needed to transition the UK to net zero.

“Balfour Beatty’s market leading capabilities, underpinned by our unrivalled experience and proven track record in delivering complex infrastructure projects, means we are perfectly positioned to support the delivery of this critical project alongside Technip Energies and GE Vernova – proving on the world-stage that the UK is primed and ready to lead the way in decarbonising our industrial footprint.”

Technip Energies chief executive Arnaud Pieton said: “Our selection for the Net Zero Teesside Power project is a testament to Technip Energies growing leadership position as an integrated state-of-the-art CCUS solutions provider. By capturing up to 2 million tonnes of CO2 at a large power plant, we collectively rise to the challenge of scale by providing sustainable and available energy at a large scale.”

Sam White, managing director for natural resources at Costain, said: “This award is a testament to Costain’s position as a leading infrastructure solutions provider for the UK’s energy transition goals. Having completed delivery of the FEED stage, we continue to support bp as it progresses the wider decarbonisation of the local energy supply and pursues innovative carbon capture and storage solutions.”

Selection of contractors follows the recent granting of the development consent order by Claire Coutinho, secretary of state at the Department for Energy Security & Net Zero, with the project shortlisted for UK government funding.

Final contract awards are subject to receipt of regulatory clearances and final investment decisions (FID), which is expected by September 2024.

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