Balfour Beatty wins $1.14bn contract for world's first carbon capture power station
Balfour Beatty has secured a landmark $1.14 billion contract to build what is set to become the world's first gas-fired power station equipped with carbon capture and storage technology.
The company will partner with Technip Energies and GE Vernova to construct the Net Zero Teesside Power facility, a groundbreaking project that aims to demonstrate how traditional power generation can be transformed to support Britain's net zero ambitions.
The new combined cycle gas-powered plant will generate up to 742 megawatts of low-carbon electricity, sufficient to power more than one million UK homes annually. What makes the facility revolutionary is its post-combustion carbon capture system, designed to trap up to two million tonnes of CO2 each year before compressing and transporting it through offshore pipelines for permanent storage beneath the North Sea.
Net Zero Teesside Power represents a joint venture between bp and Equinor, whilst the captured carbon will be handled by the Northern Endurance Partnership, a collaboration between bp, Equinor, and TotalEnergies.
Leo Quinn, Balfour Beatty's Group Chief Executive, described the project as "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 contract follows the Government's October 2024 announcement of a $29.8 billion commitment to carbon capture and storage projects across energy, industry, and hydrogen production sectors. Net Zero Teesside Power received its final investment decision in December 2024.
Construction is expected to begin later this year, with completion targeted for 2028. At its peak, the project will employ approximately 1,500 people, with Balfour Beatty committed to ensuring at least 5% of the workforce comprises apprentices and graduates through its participation in The 5% Club initiative.
The project promises significant economic benefits for North-East England, generating thousands of employment opportunities whilst advancing the region's position as a hub for clean energy innovation and sustainable industrial development.
