Let's talk

Biggest investment since ICI as contractors selected for £4billion Net Zero construction

Posted on 15 March 2024

Biggest investment since ICI as contractors selected for £4billion Net Zero construction

Biggest investment since ICI as contractors selected for £4billion Net Zero construction

The biggest single investment in Teesside industry in generations has been hailed as a ‘transformational’ moment for jobs and Teesworks’ ambition as global capital for green energy and innovation.

Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP) have selected contractors for engineering, procurement, and construction contracts with a combined value of around £4billion.

The selection of nine leading specialist contractors across eight contract packages is a major milestone for the Teesside-based projects, which would contribute to the UK’s journey towards net zero emissions by 2050.

Hartlepool-based Liberty Steel is among the companies selected, with NZT and NEP adding the investment represents a significant opportunity for both the local and UK supply chain.

Tees Valley Mayor Ben Houchen said: “We are delivering the highly-skilled well-paid jobs of the future as part of these world-leading developments that have established our area as a world-leading centre in the clean, green industries of the future,

“This would be the single biggest investment in Teesside since ICI. It cannot be understated the transformational economic impact this will have right across Teesside, Darlington and Hartlepool.

“This £4billion investment will provide huge opportunities for our incredible local businesses and it is fantastic that our area is already benefitting through the selection of Liberty Steel.”

Extensive work to clear and prepare the former Redcar Blast Furnace site by Teesworks Ltd for NZT Power is continuing after commencing in 2023.

Teesworks Chairman Chris Musgrave said: “This is another major milestone and shows the massive impact Teesworks is bringing to the local economy in terms of jobs and investment.

“We’ve worked hard to prepare the site and now the contractors have been selected, it means we are moving forward at pace on this transformational project.

“NZT Power is a key part our green energy drive, feeding into the net zero ambitions of existing businesses and becoming a prime asset for others looking to relocate here. This shows the speed at which we’re moving for the good of local people and the region.”

Siobhan McArdle, Tees Valley Business Board chair, said: “This is outstanding news for the region and delivers huge opportunities for our supply chains and local businesses.

“We are working closely with businesses of all sizes to develop and deliver the support and skills development programmes they need so that they capitalise on the opportunities that come from this and other projects.

“Businesses unsure about the opportunities that exist across the Tees Valley, both immediate and in the pipeline, should contact the Business Board directly for support and guidance.”

NZT Power – led by partners bp and Equinor – last month received planning approval by the Secretary of State after a detailed process lasting more than two years.

NZT Power aims to be the world’s first gas-fired power station with carbon capture and storage capability and will help drive Teesside’s aim to become the UK’s first decarbonised industrial cluster as early as 2030.

The project could create and support up to 4,000 jobs during construction and operations and add up to £300million to the economy per year.

The proposed power station will generate up to 860 megawatts of low carbon electricity – enough to power up to 1.3 million UK homes. Up to two million tonnes of CO2 emissions from the power station will be captured each year – emissions which would otherwise be released into the atmosphere.

The captured CO2 will then be transported by the Northern Endurance Partnership by pipeline to a geological storage site under the North Sea, where it will be permanently and safely stored.

The final award of contracts is subject to the receipt of relevant regulatory clearances and positive Final Investment Decisions (FID) by the projects and UK government, planned for September 2024 or earlier. Following FID, the projects would be aiming for first commercial operations from 2027.

For additional information on the announcement, including full details of contract awards, go here
https://www.netzeroteesside.co.uk/news/net-zero-teesside-power-and-the-northern-endurance-partnership-select-contractors-for-c-4bn-construction-contracts/

NEWS RELEASE: ISSUED ON BEHALF OF TEESWORKS

Loading...