Balfour Beatty has been awarded an £833m ($1.14bn) contract by Technip Energies to serve as the construction partner for Net Zero Teesside Power in the UK.
This project is claimed to become the world’s first gas-fired power station with carbon capture and storage. The focus will be on constructing a large-scale combined cycle gas-powered generation plant.
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In collaboration with Technip Energies and GE Vernova, and supported by Shell Catalysts & Technologies, Balfour Beatty will build the plant for Net Zero Teesside Power, a joint venture (JV) between BP (bp) and Equinor.
Additionally, the company will construct a post-combustion carbon capture system to capture up to two million tonnes of carbon dioxide (CO₂) annually.
The captured CO₂ will be compressed and fed into an offshore pipeline for storage under the North Sea by the Northern Endurance Partnership, a joint venture involving bp, Equinor, and Total Energies.
Balfour Beatty will leverage its expertise in civil engineering, ground engineering, and power transmission to deliver this project.
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By GlobalDataUpon completion, the power station is expected to produce up to 742MW of low-carbon power, meeting the annual electricity needs of over one million UK homes.
This aligns with the UK’s transition to a cleaner energy future.
Balfour Beatty Group chief executive Leo Quinn remarked: “Net Zero Teesside Power is an ambitious scheme, forging the path towards the sustainable infrastructure of the future.”
Quinn further noted the scheme’s role in boosting regional economic growth and generating employment opportunities in the North-East of England.
The contract follows the UK government’s £21.7bn pledge for carbon capture projects and the final investment decision for Net Zero Teesside Power in December 2024.
The contract value will be added to Balfour Beatty’s order book by the second quarter (Q2) of 2025, with main construction starting later this year and completion targeted for 2028.
