Major companies join forces to advance UK net zero project
Plan to decarbonize local industry in the UK’s Teesside region takes a step forward
The UK’s first zero-carbon industrial centre took another step closer to reality today with the formation of a consortium to accelerate the Net Zero Teesside project.
BP with Eni, Equinor, Shell and Total have assumed leadership, transitioning the Net Zero Teesside project from OGCI Climate Investments – the $1 billion fund of the Oil and Gas Climate Initiative.
BP, which earlier this month announced its ambition to be a net zero company by 2050 or sooner, will take on the role as operator of the scheme, previously known as the Clean Gas Project.
Decarbonizing industry
The project will use carbon capture utilization and storage (CCUS) technology to decarbonize local industry. In this case, building a transportation and storage system to gather industrial carbon dioxide (CO2), compress it and store it safely in a reservoir under the North Sea. It’s hoped that the transportation and storage infrastructure will encourage new investment in the region from industries that wish to store or use CO2.
In addition, a combined cycle gas turbine (CCGT) facility with carbon capture technology will provide low carbon power as a complement to renewable energy sources and underpin the investment in the infrastructure.
With a start-up date of around five years, the project aims to capture up to six million tonnes of CO2 emissions each year – equivalent to the annual energy use of up to two million homes in the UK.
It will also deliver an annual gross benefit of up to £450 million for the Teesside region and directly support up to 5,500 jobs.
Commitment to net zero targets
Andy Lane, managing director of Net Zero Teesside, said: “Its advantageous location, advanced planning stage, the expertise of our world-class project partners and government support for decarbonization in the UK mean Net Zero Teesside is uniquely positioned to become the UK’s first decarbonized cluster. The formation of such a powerful partnership led by BP demonstrates the industry’s commitment to the UK government’s net zero targets.”
“The formation of such a powerful partnership led by BP demonstrates the industry’s commitment to the UK government’s net zero targets.”
Andy Lane, managing director of Net Zero Teesside
Pratima Rangarajan, CEO of OGCI Climate Investments, said: “Net Zero Teesside is a demonstration of OGCI’s commitment to accelerating CCUS on a global scale.”
At its launch event in Middlesbrough, UK, today, Net Zero Teesside will also announce it has signed memorandums of understanding (MoUs) with three existing industrial partners demonstrating the strong local commitment to decarbonizing existing local industry.
World-leading project
Tees Valley Mayor Ben Houchen added: “This world-leading, industrial-scale decarbonization project will safeguard and create 5,500 good-quality, well-paid jobs for local people. It will act as a beacon for new technologies and further investment as other companies are attracted to our area, while helping the UK to achieve its clean energy potential.”
