The UK government has given the green light to a GBP4 billion ($5.2 billion) project to build an industrial-scale carbon capture, utilisation, and storage (CCUS) facility in North East England. Spearheaded by BP PLC and Equinor ASA, the Net Zero Teesside (NZT) project will commence later this year, with operations expected to begin by 2027.
The NZT facility will be a major component in the region’s efforts to transition to low-carbon energy. It is set to generate up to 860 megawatts of low-carbon electricity—enough to power approximately 1.3 million UK homes—according to the South Tees Development Corporation. Additionally, the project will capture up to two million tonnes of CO2 emissions annually from the power station, emissions that would otherwise be released into the atmosphere.
The CO2 captured by the facility will be transported via pipeline by the Northern Endurance Partnership to a geological storage site beneath the North Sea, where it will be permanently stored. This innovative approach aligns with the UK’s net-zero ambitions and strengthens energy security while mitigating the environmental impacts of carbon emissions.
Tees Valley Mayor Ben Houchen described the government’s approval of the project as “a monumental day” for Teesside, with the potential to make the region a global leader in green energy. “The NZT project will provide power to 1.3 million homes, help with energy security, but more importantly, it will give generational job opportunities to local people said Houchen. He noted that the Teesworks area, where the facility will be located, has already attracted billions in private investment and is expected to create thousands of new jobs.
Chris Musgrave, chairman of the Teesworks industrial zone, echoed the sentiment, calling the news “fantastic” and emphasising the potential for the project to bring both jobs and investment to the region. “It’s a huge step towards a greener future for us all, and I’m proud that the Teesworks site will be at the heart of it,” Musgrave added.
Beyond the carbon capture facility, Teesside is also exploring other clean energy initiatives, including dynamic battery storage, sustainable aviation fuels, and hydrogen fuel production. These ventures, combined with the NZT project, are expected to significantly boost local revenues, with business rates projected to increase by GBP79 million annually once large-scale operations become fully functional.
Houchen emphasised that the project marks a transformation for Teesside, shifting the area’s reputation from an old industrial hub in decline to a global leader in clean energy technologies. “Teesside is no longer seen as an old industrial heartland in decline—we are now a global player leading the world once again,” he said, describing this moment as “the start of a golden generation for Teesside.”