30-03-2023

Three bp-led low carbon projects in Teesside continue to make progress towards development

Two bp-led low-carbon projects, Net Zero Teesside Power (NZT Power) and H2Teesside, have been selected among Track-1 Capture Projects to proceed to negotiations for government funding support with The Department for Energy Security & Net Zero (DESNZ). Final investment decisions are expected in 2024. In addition, bp’s HyGreen Teesside project has been selected to progress to the next stage of DESNZ’s Hydrogen Business Model (HBM) and Net Zero Hydrogen Fund (NZHF) programmes, which aim to kickstart the low carbon hydrogen economy across the UK and support commercial deployment.

Net Zero Teesside Power is a first-of-a-kind gas-fired power station with carbon capture technology. The proposed combined cycle gas turbine plant will have an electrical output of up to 860 megawatts (MW), enough to power up to 1.3 million homes per year.

H2Teesside aims to be one of the UK’s largest blue hydrogen production facilities, targeting 1.2GW of hydrogen production by 2030, over 10% of the UK government’s hydrogen target for 2030.

Both projects are part of the East Coast Cluster (ECC), a world-leading initiative to decarbonise the industrial heartlands of Teesside and the Humber. The ECC has the potential to transport and securely store over 20 million tonnes of carbon dioxide (CO2) per year by 2035 – around 50% of all UK industrial cluster emissions.

HyGreen Teesside aims to be one of the biggest green hydrogen facilities in the UK, targeting 80 megawatt electrical (Mwe) of green hydrogen capacity by 2025 and an expansion of up to 500 MWe by 2030. The project could help fuel the development of Teesside into the UK’s first major hydrogen transport hub by providing enough low carbon hydrogen to power the equivalent of over 10,000 Heavy Goods Vehicles.

Louise Kingham, bp’s UK head of country and senior vice president of Europe, said: “Today’s announcement is a huge step forward for these transformative projects, which will help drive the region’s low carbon revolution and deliver the UK’s net zero targets. We’re backing Teesside, and to support it are working with local partners to establish skills and training programmes to help equip the local community to build careers in these vital low carbon industries. We’re excited to be supporting economic regeneration in the region and moving to the next phase of project development.”

Anja Dotzenrath, bp’s executive vice president of gas and low carbon, added: “Teesside represents the transformation we can create as a company for both industries and communities. It underpins our ambition to be a global leader in low carbon energy, including green and blue hydrogen as well as carbon capture and storage. Today is a critical step forward and we look forward to progressing these projects and the contribution they can make to a Net Zero future.”

The projects can play an important role in boosting the local economy of Teesside, the wider east coast cluster and the UK. NZT Power could support more than 4,000 jobs during construction and add up to £300 million to the economy each year. H2Teesside could create 1,200 construction and 600 operational jobs by 2027. HyGreen Teesside could generate an average of 660 jobs a year during construction and create and safeguard over 100 jobs a year during operation.

bp is working with local councils, authorities and educators to create new opportunities for local people to develop skills and secure jobs in low carbon industries that inspire and engage communities. This includes establishing a fund for net zero-focused community projects, financial support for the creation of a Clean Energy Education Hub at Redcar & Cleveland College and a scholarship scheme for further education students to prepare them for the low carbon engineering roles of the future.