Contracts signed for UK’s first carbon capture projects in Teesside
Power Engineering International
Posted on: 12 December 2024
The UK government has announced that the first contracts for the Northern Endurance Partnership carbon capture project have been signed.
The UK government has announced that the first contracts for the Northern Endurance Partnership carbon capture, usage and storage (CCUS) project have been signed.
Northern Endurance Partnership (NEP), in which TotalEnergies holds a 10% shareholding interest, will permanently store up to an initial 4 million tonnes of CO2 per year.
The NEP infrastructure will initially serve three carbon capture projects in the Teesside region (NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture). Infrastructure includes an onshore CO2 gathering network, compression facilities and a 145km offshore pipeline connected to subsea injection facilities in the Endurance saline aquifer located around 1,000m below the seabed.
Construction is expected to start from mid-2025 with first CO2 storage expected in 2028.
The news follows the government’s £21.7 billion ($27.6 billion) funding commitment to realise the UK’s vision for CCUS and aims to drive investment in industrial communities such as Teesside.
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According to the Department for Energy Security and Net Zero, the deals will unlock £4 billion ($5.1 billion) worth of supply chain contracts, and will provide approximately 2000 jobs for locals.
Louise Kingham, SVP Europe and head of country, UK for BP said: These projects represent another step forward for BP’s overall investment plans in the UK. They harness the skills, talent and determination of an established industrial region and apply them to the UK’s own energy transition. We’re proud of the potential of these projects to help stimulate economic growth by supporting thousands of jobs and helping UK companies prosper through the vast supply chains involved, while creating the infrastructure to help major industrial companies with their decarbonisation plans."
This announcement comes as the North Sea Transition Authority (NSTA) awards the first-ever carbon storage permit to the Endurance store. It also marks a significant milestone as Ofgem takes over as the regulator for the CCUS economic licence, overseeing the construction of the country’s first-of-a-kind CCUS Network. The Low Carbon Contracts Company (LCCC) will also play a vital role as counterparty to the CCUS business models – the Dispatchable Power Agreement and the Revenue Support Agreement.
