Bp: and its partners award the first engineering contracts to advance major electricity and carbon capture projects in the UK

On behalf of its partners, bp – the operator of Net zeroTeesside To be able to(NZT Power) and the Northern Endurance Partnership (NEP) – awarded contracts under its dual Front End Engineering Design (FEED) competition to two separate engineering consortia, carbon capture licensors, suppliers electricity and EPC contractors.

The awards represent an important next step towards the proposed development of the UK’s first large-scale integrated power plant and carbon captureproject. Invest in carbonCapture, use and storage (CCUS) is a key point in the UK government’s 10-point plan for a green industrial revolution, announced in November 2020.

In October 2021, the UK government selected the Northern Endurance Partnership’s East Coast Cluster as one of the first two clusters to be implemented as part of its carbon capture and storage cluster sequencing process ( CCUS). The Northern Endurance partnership, which bp leads as an operator, will provide the Infrastructurerequired to transport CO2 transmitters through the Humber and the Teesside to secure off the coaststorage in the Endurance aquifer in the southern North Sea.

The two groups will now design and submit development plans for the power plant and carbon capture plant proposed by NZT Power, and the Teesside high pressure carbon dioxide project (CO2) compression and export facilities.

The two groups of entrepreneurs selected are:

  • Technip Energies and General Electric consortium: managed by Technip Energies and including Shell as a subcontractor for the supply of Cansolv CO under license2 capture technology and Balfour Beatty as nominated construction partner.
  • Consortium Aker Solutions Doosan Babcock and Siemens Energy: led by Aker Solutions and including Aker Carbon Capture as a subcontractor for the supply of CO under license2 capture technology.

The two consortia will each deliver a full FEED package, led from their UK offices, over the next 12 months. Once the FEED process is complete, the two consortia will then submit Engineering, Procurement and Construction (EPC) proposals for the execution phase. As part of the final investment decision expected in 2023, a single consortium will be selected to move the project forward in construction.

Louise Kingham, country manager of bp UK and senior vice president for Europe, said: “Moving to front-end engineering design is a major milestone for Net Zero Teesside Power and the development of the Northern Endurance Partnership. a-kind project has the potential to provide sufficient low carbon, flexible electricity to power around 1.3 million homes, and can help secure Teesside’s position at the green heart of the country’s energy transition. ”

Andy Lane, MD Northern Endurance Partnership, said: “The Northern Endurance Partnership will play a key role in the UK’s journey to net zero, providing the transport and storage infrastructure that enables the decarbonization of a range industries across Teesside and the Humber as well.

“Today’s news is a clear signal of momentum within the East Coast cluster following our selection in October as one of the UK’s first two carbon capture and storage clusters by the British government. ”

“Switching to front-end engineering is a major milestone for Net Zero Teesside Power and the development of the North Endurance partnership. This one-of-a-kind project has the potential to provide enough flexible, low-carbon electricity to power approximately 1.3 million homes and can help secure Teesside’s position at the green heart of the country’s energy transition. ”

Louise Kingham, Country Manager, UK, and Senior Vice President, Europe, bp

Tees Valley Mayor Ben Houchen said: “This is the final step in delivering this revolutionary facility to Teesside. Net Zero Teesside Power puts our region, our engineers and scientists at the center of plans to make the UK net zero. by 2050 and with it, thousands of high-quality, well-paying jobs to develop the cleaner, safer and healthier industries of the future. world in. “

NZT Power, a joint venture between bp and Equinor, is a gasfully integrated thermal power plant with carbon capture. The project is expected to provide flexible and distributable low-carbon electricity to complement the growing deployment of intermittent forms of renewable energy such as wind and solar.

The contracts also include FEED for NEP’s Teesside facilities which will collect and compress the CO2 from NZT Power and other regional sources and export it offshore for permanent underground storage in the Endurance carbon reservoir. NEP will also take CO2 captured from a range of projects in the Humber area as part of the East Coast Cluster. The Northern Endurance Partnership is a joint venture between bp, Equinor, National Grid Ventures, Shell and TotalEnergies.

Taking the emissions from the Teesside and Humber regions, the east coast cluster has the potential to safely transport and store nearly 50% of all CO in the UK industrial cluster.2 emissions – up to 27 million tonnes of CO2 emissions per year by 2035. It plans to create and support an average of 25,000 jobs from 2023 to 2050, with around 41,000 jobs at the peak of the project in 2026.

NZT Power plans to submit a bid in January 2022 for selection as part of Phase 2 of the UK government’s Carbon Capture, Use and Storage (CCUS) cluster sequencing process. In October, the East Coast cluster led by the Northern Endurance Partnership was named a Track-1 cluster in the first phase of the sequencing process.

Jacob Young, Conservative MP for Redcar, said: “Net Zero Teesside represents another pioneering innovation of its kind that places Teesside at the very center of the UK’s net zero ambitions.

“When completed, the Net Zero Teesside project will provide low-carbon electricity to more than one million homes using carbon capture technology to help meet the requirements of the government’s 10-point plan. UK for a green industrial revolution.

“Having consortia of such prestige working on the designs that will make these innovations a reality is an extremely important step and I am delighted to see the progress that continues at the pace of this project, providing new clean and green jobs. for Teessiders. ”

Ewan Drummond, senior vice president of bp projects, said: “The signing of the Double FEED contracts today is the culmination of an extensive market engagement process over the past 18 months, and we are delighted to work with Aker and Consortia led by Technip UK.Our contracting strategy allows for early selection of licensors and electricity providers for carbon capture as well as EPC and construction contractors to minimize the risks associated with technology and delivery while allowing each consortium to differentiate in their designs and delivery approaches. ”

“The signing of the dual FEED contracts today is the culmination of an extensive market engagement process over the past 18 months, and we are delighted to be working with the selected consortia led by Aker and Technip UK. ”

Ewan Drummond, senior vice president projects, bp

Arnaud Pieton, CEO of Technip Energies, commented: “We are honored to have been selected, together with GE Gas Power, our consortium partner, to work on Net Zero Teesside Power, a flagship carbon capture project in the sector. British energy company. Led by Technip Energies, the consortium will be supported by Shell Catalysts & Technologies, supplier of Cansolv CO under license2 capture technology and Balfour Beatty, our UK construction partner. Our capabilities in carbon capture and technology integration projects, combined with GE Gas Power’s expertise in engineering, operability and integration of combined cycle natural gas plants, will support the bp’s objective to develop one of the first carbon-free industrial clusters in the world. . This project illustrates perfectly that cross-sectoral collaboration is essential to achieve the net zero goals. “

Aker Solutions CEO Kjetel Digre said: “Net Zero Teesside is a historic development for the UK and a milestone on the road to net zero. Our consortium of Aker Solutions, Siemens Energy and Doosan Babcock are exceptionally proud to work together. with bp on this innovative energy transition support project. ”

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