Balfour Beatty awarded £833 million contract for Net Zero Teesside Power

Balfour Beatty will act as construction partner alongside Technip Energies and GE Vernova (Photo: Balfour Beatty)

The project, a joint venture between bp and Equinor, involves the construction of a large-scale combined cycle gas power station, incorporating a post-combustion carbon capture facility designed to capture up to two million tonnes of CO₂ per year.

Captured carbon will be compressed and transported via offshore pipeline for storage beneath the North Sea by the Northern Endurance Partnership, a collaboration between bp, Equinor and TotalEnergies.

Balfour Beatty will act as construction partner alongside Technip Energies and GE Vernova, supported by Shell Catalysts & Technologies. The company will provide civil engineering, ground engineering, and mechanical and electrical works as part of its scope.

Once operational, the plant is expected to produce up to 742 megawatts of dispatchable low-carbon electricity, sufficient to meet the average annual needs of more than one million UK homes.

The contract follows the UK Government’s £21.7 billion commitment announced in October 2024 to support carbon capture and storage across energy, industrial and hydrogen sectors. NZT Power and the Northern Endurance Partnership reached Final Investment Decision in December 2024.

Construction is scheduled to begin later in 2025, with completion targeted for 2028. At peak, Balfour Beatty anticipates employing around 1,500 people on the project, with at least 5% of the workforce comprising apprentices and graduates.