Net Zero Teesside Power (NZT Power) will be the world’s first commercial scale gas-fired power station with carbon capture. It will be the hub of a decarbonised group of industries on Teesside who will share the carbon dioxide (CO2) transportation and storage infrastructure being developed by the Northern Endurance Partnership to serve the East Coast Cluster.
KEY INFORMATION
Location: Teesside, UK
Date started: 2021
Completion date: 2022
Client type: energy and natural resources
Main capabilities: procurement and supply chain
Enabling a net zero vision
NZT Power is a first-of-a-kind fully integrated gas-fired power and carbon capture project. The proposed combined cycle gas turbine electricity generating station will have an electrical output of up to 860 megawatts of low carbon electricity, enough to power up to 1.3m homes per year, or close to 5 percent of all homes in the UK.
The project will complement greater deployment of renewable energy such as wind and solar by providing flexible, dispatchable low carbon electricity generation to back up intermittent renewables.
Creating opportunities in the UK supply chain
As a key stakeholder within the NZT collaboration, bp led the development of the procurement and project delivery strategy for the power and carbon capture project.
Our role with bp supported the development of the project’s procurement and contract strategy, including identifying and mapping a UK supply chain for carbon capture technology.
We helped bp to identify, assess and understand how their procurement and contracting strategy could realise the outcomes and benefits of the project, while mitigating the market’s risk appetite and addressing any key capability or capacity constraints.
Our work included developing an intelligent Front End Engineering Design (FEED) tender documentation for the proposed power station and carbon capture plant, including the high-pressure CO2 compression and export facilities work packages. Throughout the commission, we leveraged our extensive knowledge of the UK and industry to embed insights and best practice from across the UK infrastructure and natural resources sectors.
The procurement and contracting strategy developed balances risks between the project and the supply chain, with a clear focus on collaboration to address the project’s challenges. This has led to the successful appointment of two engineering contractors as part of the power and carbon capture project’s dual competition.
Meeting green targets
The project will use Carbon Capture Utilisation and Storage (CCUS) technology to help decarbonise local industry. It will utilise a transportation and storage system to be operated by the Northern Endurance Partnership (NEP), a partnership between bp, National Grid, Equinor, Shell and Total, which will gather industrial CO2, compress it, and store it safely in a saline aquifer under the North Sea.
It’s hoped that the transportation and storage infrastructure will encourage new investment in the Teesside region from industries that wish to store or use CO2.
From the power plant alone, the proposed CCUS infrastructure will capture and store up to two million tonnes of CO2 a year, making a significant contribution toward the UK reaching its net zero greenhouse gas emissions target by 2050.
NZT Power can generate almost £3.5bn in Gross Value Added (GVA) to the economy over the project lifecycle, until 2050. This is expected to peak at over £300m GVA in 2025 alone. NZTP could support more than 3,000 jobs annually during construction, peaking in 2024. Once completed, the project could support over 1,000 jobs annually during its lifecycle, until 2050.
