Balfour Beatty awarded £833 million Net Zero Teesside Power contract

CGI of Net Zero Teesside Power

BALFOUR Beatty has been awarded an £833 million contract by Technip Energies to act as construction partner for Net Zero Teesside Power.

The onshore power, capture and compression project is tipped to be the world’s first gas-fired power station with carbon capture and storage.

Balfour Beatty will work alongside Technip Energies and GE Vernova – with the support of technology partner Shell Catalysts & Technologies – to construct the combined cycle gas-powered generation plant for Net Zero Teesside Power, a joint venture between bp and Equinor.

The contractor will also build the post combustion carbon capture system, which is expected to capture up to two million tonnes of CO2  per year, before it is compressed and fed directly into the offshore pipeline to be stored under the North Sea by the Northern Endurance Partnership – a joint venture between bp, Equinor and Total Energies.

On completion, it is expected the new power station will produce up to 742 megawatts of low-carbon power, equivalent to the average annual electricity requirements of more than one million UK homes.

Leo Quinn, Balfour Beatty group 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 move follows the UK Government’s announcement in October of a £21.7 billion pledge for projects to capture and store carbon emissions from energy, industry and hydrogen production, and Net Zero Teesside Power and the Northern Endurance Partnership subsequently receiving final investment decision in December.

At peak, Balfour Beatty said it will employ around 1,500 people with at least 5% of its workforce being made up of apprentices and graduates as part of the company’s commitment to The 5% Club.