$5bn Teesside Gas Power Plant: World’s First Commercial-Scale Project with Integrated Carbon Capture

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Teesside Gas Power Plant

Net Zero Teesside Power Limited is advancing construction of Teesside gas power plant, the world’s first commercial-scale gas plant with integrated carbon capture. The 742MW project is taking shape at Teesworks in Redcar, northeast England.

It combines a combined-cycle gas turbine plant with post-combustion carbon capture and compression facilities. Moreover, the development forms part of the wider East Coast Cluster carbon capture, utilization and storage network.

Construction activity began in 2025 following financial close in December 2024. The project targets commercial operation in 2028, creating a major test case for large-scale gas power with carbon capture.

The project carries a combined construction contract value of around $5 billion. The original £4 billion figure covers contracts across NZT Power and the Northern Endurance Partnership. However, it does not represent government funding.

Teesside Gas Power Plant construction moves into major delivery

Teesside gas power plant construction now covers earthworks, piling and major equipment installation. Balfour Beatty began earthworks and piling during 2025. Its scope includes major civil, mechanical and electrical construction activities.

The construction partner holds an £833 million contract with Technip Energies. The package covers the onshore power, carbon capture and compression facilities.

Balfour Beatty also plans modular construction for mechanical and electrical equipment and plant rooms. This approach allows fabrication in controlled factory conditions before site installation.

Meanwhile, major equipment has started arriving through Redcar Bulk Terminal. The terminal’s deep-water quay upgrade has also been completed.

The construction program forms part of a wider supply-chain mobilization across Teesside. More than 230 subcontracts worth £1.5 billion had reached UK businesses by March 2026.

Teesside Gas Power Plant integrates generation and carbon capture

Teesside gas power plant will use a GE Vernova 9HA.02 gas turbine within its combined-cycle configuration. The plant will also include a steam turbine, generator and heat recovery steam generator.

Furthermore, the power station will integrate Technip Energies’ Canopy by T.EN solution. Shell’s CANSOLV carbon capture technology will support the post-combustion capture process.

The facility will capture up to 2 million tones of carbon dioxide annually. The captured gas will enter compression infrastructure before moving through the Northern Endurance Partnership network.

The network will transport carbon dioxide offshore for permanent storage beneath the North Sea. Therefore, the power station depends on both capture equipment and shared transport infrastructure.

Teesside Gas Power Plant construction supports wider industrial decarbonization

The plant construction extends beyond the generating station itself. The project connects directly with infrastructure designed to serve additional Teesside carbon capture projects.

The Northern Endurance Partnership will initially transport and store up to 4 million tones of carbon dioxide annually. Its infrastructure will support NZT Power and other projects within the East Coast Cluster

The wider program includes pipelines, offshore facilities, subsea injection systems and communications infrastructure. Nine specialist contractors are delivering the combined program across eight engineering and construction packages.

The UK government granted development consent for the onshore project in February 2024. The approval covered the generating station, capture plant, connections, CO2 gathering network and export infrastructure

The project could support more than 3,000 construction jobs. It is also expected to require about 1,000 operational roles annually through 2050.

The project forms part of a wider push to decarbonize gas infrastructure. Similar innovation is emerging in pipeline construction, including France’s world’s first fully sustainable gas pipeline built using bio-based HDPE.

Teesside Gas Power Plant

Project Fact Sheet

Project: Net Zero Teesside Power (NZT Power)

Location: Teesside, Redcar and Cleveland, northeast England, UK

Type: Commercial-scale gas-fired power plant with integrated carbon capture and storage

Construction value: Approximately $5 billion for the combined NZT Power and NEP construction contracts

Original contract value: Approximately £4 billion across eight contract packages

Power generation capacity: 742MW

Generation technology: Combined-cycle gas turbine

Gas turbine: GE Vernova 9HA.02

Carbon transport: Northern Endurance Partnership infrastructure

Carbon storage: Subsea geological storage beneath the North Sea

Project status: Construction and execution phase

Carbon capture technology: Canopy by T.EN powered by Shell CANSOLV

Construction start: 2025

Carbon capture capacity: Up to 2 million tones of CO2 annually

Expected commercial operation: 2028

Financial close: December 2024

Development consent: Granted February 2024

Construction employment: More than 3,000 jobs

Operational employment: Approximately 1,000 roles annually

Wider program: East Coast Cluster CCUS network

Project Team

Owner: Net Zero Teesside Power Limited

Shareholders: bp and Equinor

Power, capture and compression EPC consortium: Technip Energies and GE Vernova

Construction partner: Balfour Beatty

Carbon capture technology licensor: Shell Catalysts & Technologies

Onshore CO2 gathering and gas connection: Costain

Linepipe suppliers:

  • Marubeni-Itochu Tubulars Europe
  • Liberty Steel Hartlepool
  • Corinth Pipeworks and Eisenbau Kramer

Offshore pipeline and landfall contractor: Saipem

Offshore subsea injection systems: TechnipFMC

Power and communications cable: Alcatel Submarine Networks

Offshore systems engineering: Genesis

Integrated project management: Wood

Carbon transport and storage infrastructure: Northern Endurance Partnership

Technical lender adviser: Worley Consulting

Operations, engineering and maintenance: px Group

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