Thousands of new jobs will be supported in the North East of England as contracts for the first carbon capture, usage and storage (CCUS) projects in the UK are signed, according to the UK government’s Department for Energy Security and Net Zero.
The East Coast Cluster in Teesside – a project that will capture and store carbon emissions from industries in the region – is now set to start construction in mid-2025.
This investment decision follows the UK government’s £21.7 billion funding commitment “to ensure the UK’s vision for CCUS becomes a reality in the UK.”
Work is set to begin in 2025, with one of the first projects, Net Zero Teesside Power, estimating to deliver secure low-carbon energy capable of powering up to one million homes from 2028.
The deals will unlock £4 billion worth of contracts that will be awarded by projects in the East Coast Cluster to supply chains.
Louise Kingham, SVP Europe and head of country, UK for BP, said: “These projects represent another step forward for BP’s overall investment plans in the UK. They harness the skills, talent and determination of an established industrial region and apply them to the UK’s own energy transition.
“We’re proud of the potential of these projects to help stimulate economic growth by supporting thousands of jobs and helping UK companies prosper through the vast supply chains involved, while creating the infrastructure to help major industrial companies with their decarbonisation plans.”
Alex Grant, SVP and head of country, UK for Equinor, said: “The UK is a key market for Equinor and we have a history of delivering significant energy provision along its East Coast, transitioning from traditional oil and gas demand to include renewables and low carbon options such as CCS and hydrogen.
“This is a major step for both Equinor and the UK, helping to decarbonise the country’s industrial heartlands and achieve its net zero ambitions whilst providing jobs and supply chain opportunities. We look forward to working with the new government to deliver further low carbon projects across the UK.”
Arnaud Le Foll, SVP New Business – Carbon Neutrality, for TotalEnergies, said: “We are very pleased to be a part of this significant moment in the development of the UK’s CCS industry. Northern Endurance Partnership is a frontrunner project, and we look forward to transporting and permanently storing CO2 from one of the UK’s largest industrial regions.
“Our stake in Northern Endurance Partnership contributes to TotalEnergies’ objective to develop significant CO2 storage capacities in the North Sea, where we can leverage our expertise in operations and geosciences.”
This announcement of the contracts comes as the North Sea Transition Authority (NSTA) awards the first-ever carbon storage permit to the Endurance store.
Stuart Payne, North Sea Transition Authority (NSTA) Chief Executive, said: “This is a truly historic day. Carbon storage has been long planned but is now becoming a reality.
“For a long time we have talked about the possibility of carbon storage; we have often touted the UK’s vast geographic potential of 78GT, we have drawn up plans for a carbon storage economy and we have grasped the prospect of new jobs. Now we are making it happen.
“The energy industry already has the infrastructure, a world class supply chain and highly-skilled people who can drive the change we need to maintain a thriving energy sector which offers quality jobs and leads the way to net zero. Now let’s put them to work.”
Neil McDermott, CEO of the Low Carbon Contracts Company, said: “The Low Carbon Contracts Company has been working closely with the Department for Energy Security and Net Zero to develop and implement this first of a kind scheme to accelerate towards our Net Zero goals.
“This contract signing marks a key milestone as we expand our critical role beyond renewable energy into carbon capture usage and storage. The East Coast Cluster will bring together communities, industry and academia to deliver the CCS infrastructure needed to further decarbonise our electricity mix.
“We are looking forward to working with our stakeholders on implementing this and wider decarbonisation schemes that not only help accelerate towards Net Zero but play a vital role in growing our economy and providing future careers in innovative technologies.”
UK Prime Minister Keir Starmer said: “For far too long our industrial heartlands have been held back by 14 years of instability and low-growth. Working people deserve better.
“Today’s investment is proof that this government is taking a different approach by putting growth first and investing in the industries of the future. That means thousands of jobs secured in the North East and across the UK for years to come.
“This is only the start. Our Plan for Change puts more money in working people’s pockets, secures home-grown energy and protects billpayers, so tyrants like Putin can’t attack the living standards of working people again.”
UK government Energy Secretary Ed Miliband said: “The Prime Minister was clear last week – our plan for change is going to put more money in working people’s pockets. Today’s announcement delivers both – new jobs and economic growth.
“This investment launches a new era for clean energy in Britain – boosting energy security, backing industries, and supporting thousands of highly skilled jobs in Teesside and the North East.
“This is the government’s mission to make the UK a clean energy superpower in action – replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”