Balfour Beatty has secured an £833m contract to construct the Net Zero Teesside Power project, which is set to become the world’s first gas-fired power station with carbon capture and storage.
Awarded by Technip Energies, the contract will see Balfour Beatty deliver the onshore power, capture and compression infrastructure for the project. Net Zero Teesside Power is a joint venture between oil and gas majors bp and Equinor. The project’s architect has not yet been disclosed.
Balfour Beatty will work with Technip Energies and GE Vernova, alongside technology partner Shell Catalysts & Technologies, to build a combined cycle gas turbine (CCGT) plant and post-combustion carbon capture system. The facility is expected to remove up to two million tonnes of CO₂ annually, which will be compressed and sent offshore to be stored beneath the North Sea by the Northern Endurance Partnership — a collaboration between bp, Equinor and TotalEnergies.
The station will produce up to 742 megawatts of flexible, dispatchable low-carbon power, equivalent to the annual electricity demand of more than one million homes, according to the contractor.
Balfour Beatty said it will apply its multidisciplinary capabilities in civil engineering, groundworks, mechanical and electrical delivery, and power transmission to complete the project. At peak, the firm expects to employ around 1,500 people on site, including a minimum of 5 per cent apprentices and graduates.
Group chief executive Leo Quinn said the scheme would support the UK’s net zero ambitions and boost economic growth in the North East of England by generating “thousands” of jobs.
Construction is expected to start later in 2025 and complete in 2028, with the contract’s full value to be added to Balfour Beatty’s order book by the end of the second quarter.
The award follows a final investment decision taken in December 2024 after the UK Government committed £21.7bn in October to support carbon capture and storage infrastructure for power, industry and hydrogen projects.
