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26 June 2025

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Balfour Beatty signs £833m Teesside Power deal

5 hours Balfour Beatty has been awarded an £833m contract by Technip Energies to build Net Zero Teesside Power.

CGI of Net Zero Teesside Power
CGI of Net Zero Teesside Power

Net Zero Teesside Power is an onshore power, capture and compression project that is set to be the world’s first gas-fired power station with carbon capture and storage.

Balfour Beatty will work alongside Technip Energies and GE Vernova – with the support of technology partner Shell Catalysts & Technologies – to construct the combined cycle gas-powered generation plant for Net Zero Teesside Power, a joint venture between BP and Equinor.

Balfour Beatty will also build the post combustion carbon capture system, which is expected to capture up to two million tonnes of CO2  per year, before it is compressed and fed into the offshore pipeline to be stored under the North Sea by the Northern Endurance Partnership, a joint venture between BP, Equinor and Total Energies.

On completion, it is expected that the new power station will produce up to 742 MW of low-carbon power, equivalent to the average annual electricity requirements of more than one million UK homes.

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Balfour Beatty group chief executive Leo Quinn said: “Net Zero Teesside Power is an ambitious scheme, forging the path towards the sustainable infrastructure of the future and positioning the UK as a leader in cleaner, greener energy consumption.

 “The scheme will not only be a critical driver in achieving net zero but will also play a key role in boosting regional economic growth in the North-East of England; generating thousands of employment opportunities both in the immediate term and in the future.â€

The contract award follows the UK government’s announcement in October 2024 of a £21.7bn pledge for projects to capture and store carbon emissions from energy, industry and hydrogen production, and Net Zero Teesside Power and the Northern Endurance Partnership subsequently receiving a final investment decision in December 2024.

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