Infrastructure group Balfour Beatty has been awarded a £833m contract by Technip Energies to act as the construction partner for Net Zero Teesside Power.
The site is an Onshore Power, Capture and Compression project which will be one of the world’s first gas-fired power stations 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 large-scale combined cycle gas-powered generation plant for Net Zero Teesside Power, a joint venture between bp and Equinor.
In addition, the company will 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 that the new power station will produce up to 742 megawatts of flexible, dispatchable low-carbon power, equivalent to the average annual electricity requirements of more than one million UK homes.
The contract award follows the UK Government’s announcement in October 2024 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 2024.
The full value of the contract will go into Balfour Beatty’s order book by the end of Q2 2025, with main construction expected to commence later this year and completion in 2028.
At peak, Balfour Beatty will employ c.1,500 people with at least 5% of its workforce being made up of apprentices and graduates.
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.”
Image courtesy of Balfour Beatty
