Balfour Beatty selected by bp to deliver one of the world’s first commercial scale gas-fired power and carbon capture projects in Teesside

Balfour Beatty has announced that, alongside Technip Energies and GE Vernova, it has received a Letter of Intent from bp, on behalf of NZT Power Limited, to progress with the next phase of the Net Zero Teesside Power project.

Net Zero Teesside Power, a joint venture between bp and Equinor, is poised to become one of the world’s first commercial scale gas-fired power stations with carbon capture, expected to capture up to 2 million tonnes of CO₂ per year. The project is set to provide flexible, dispatchable low-carbon power equivalent to the average electricity requirements of around 1.3 million UK homes.

In partnership with Technip Energies and GE Vernova, Balfour Beatty will construct a highly efficient combined-cycle plant, integrated with a state-of-the-art carbon capture plant using Technip Energies’ Canopy by T.EN^TM solution powered by the Shell CANSOLV® CO₂ capture technology.

Balfour Beatty will bring its deep domain knowledge and unique, end-to-end multidisciplinary capabilities to deliver this landmark project, including the company’s industrial mechanical and electrical (M&E) heritage, utilising modular construction techniques to build the M&E equipment and plant rooms off-site, in a controlled factory setting.

Leo Quinn, Balfour Beatty Group Chief Executive, 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.”

Arnaud Pieton, CEO of Technip Energies, commented, “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. With our partners GE Vernova and Balfour Beatty, we are honoured to contribute to this flagship project that supports bp and the UK in their goal of developing one of the first decarbonised industrial clusters in the world.”

Maví Zingoni, CEO, Power at GE Vernova commented: “The development of Net Zero Teesside Power, one of the world’s first commercial scale gas-fired power stations with carbon capture, marks a huge step towards supporting the UK government’s commitment to fully decarbonise its power system by 2035. GE Vernova will help bring proven expertise in natural gas combined cycle plant engineering, operability, and full-scale integration to support carbon abatement for this project. We believe post-combustion carbon capture can play a crucial role in reducing emissions and ensuring dispatchable power in the future.”

Balfour Beatty’s selection follows the recent granting of the Development Consent Order by the Secretary of State for the Department for Energy Security and Net Zero with the project shortlisted for UK Government funding.

Final contract award will be subject to receipt of regulatory clearances and final investment decisions (FID) being taken in September 2024 or earlier.