Balfour Beatty, one of UK’s infrastructure powerhouses, announced a landmark £833 million contract from Technip Energies to build Net Zero Teesside Power, a major gas-fired power plant on UK soil. The contract was handed by the French energy giant and marks a major step towards bolstering clean energy and cutting reliance on imported fuel. Starting later this year, the project will mobilize 1,500 workers, with expectations set on a 2028 completion to coincide with national energy objectives.
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Collaboration at Scale
In addition, this venture isn’t a solo act. Balfour Beatty will team up with Technip and GE Vernova, a major American energy equipment company. Together, they will deliver the combined cycle gas-turbine segment of the Net Zero Teesside Power plant, a joint effort involving BP and Equinor. Collectively, their goal is to produce up to 742 MW of flexible, low-carbon power, enough to supply over one million homes annually.
Policy-Driven Push for Clean Energy
Moreover, the UK government is fast-tracking initiatives to lower energy bills and cut carbon footprints. With an industry strategy unveiled just this week, the government is rolling out exemptions for heavy energy users and other incentives aimed at balancing costs and sustainability. Further, that broader backdrop underscores why Teesside matters, not just as a power plant, but as a catalyst in reviving local economies and supporting a national energy transformation.
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Jobs, Emissions, and Economic Growth
Finally, Balfour Beatty CEO Leo Quinn summed it up: this is not merely an energy asset, it is a cornerstone for “net zero” targets and a major economic boon for North-East England. In fact, 3,000 construction jobs will be supported during the build, with 1,000 ongoing roles upon operation. What’s more, the plant is designed to capture and store around two million tones of CO₂ annually, underlining its role in the global push to tame climate change.
Balfour Beatty NetZero Teesside Power Overview
Name: Net Zero Teesside Power (NZT Power)
Location: Teesside, North‑East England
Joint Venture Partners: BP (75%) and Equinor (25%); Northern Endurance Partnership (NEP) also involved for CO₂ storage
Technology & Capacity
Type: Combined‑cycle gas turbine (CCGT), powered by GE Vernova 9HA.02 turbine
Carbon Capture: Shell’s CANSOLV® via Technip Energies’ Canopy by T.EN™ system, capturing 95% of CO₂
Output: Up to 742 MW, serving approximately 1 million UK homes annually
CO₂ Transport & Storage: 2 million tonnes per year piped and stored offshore by NEP (BP, Equinor, TotalEnergies)
Timeline & Economic Impact
Financial Close: December 2024; official engineering go‑ahead issued mid‑December 2024
Construction Phase: Begins mid‑2025; onshore civil works (Balfour Beatty, Technip Energies & GE Vernova)
Operational Target: Full commercial operations expected by 2028
Job Creation: 3,000 construction jobs; 1,500 on‑site at peak; up to 1,000 long‑term roles; minimum 5% apprenticeships via Balfour Beatty’s 5% Club
Strategic & Policy Context
UK Government Support: £21.7 billion CCUS funding boost in 2024, aligned with 2030 clean power goals
Net‑Zero Alignment: Gas‑with‑CCS seen as essential to UK’s 2035 and 2050 carbon budgets; supports 6% of future electricity mix with CCS
Regional Benefits: Revitalizes North‑East industrial skills base, retains legacy workforce; part of wider East Coast Cluster aiming to decarbonize heavy industry
Risk & Challenges
Legal & Environmental Concerns: Government promised compensation if court halts onshore development; some critics argue lifecycle emissions may still be substantial
Scale-Up Imperative: NZT is first of its kind, UK will need 10 GW of CCS gas plants by 2035. Success here is vital to technology rollout
