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Oil & Gas News15th Dec 2021

BP awards two front-end engineering design contracts for Teesside power, CCUS projects

UK major BP, the operator of Net Zero Teesside Power (NZT Power) and ‎the Northern Endurance Partnership (NEP), has awarded two front-end engineering design (FEED) contracts as part of a competition, it said December 15.

They progress the proposed development of the UK’s ‎first full-scale integrated power and carbon capture project (CCUS). CCUS is a key point of the UK government’s 10-point plan for a green industrial ‎revolution, announced in November 2020.

NEP will provide the common infrastructure needed to transport CO2 from ‎emitters across the Humber and Teesside to secure offshore storage in the Endurance aquifer ‎in the Southern North Sea.‎

The two winning consortiums are: Technip Energies and General Electric, led by Technip Energies and ‎including Shell as a subcontractor for the provision of the licensed Cansolv CO2 capture ‎technology and Balfour Beatty as the nominated construction partner; and Aker Solutions, Doosan Babcock and Siemens Energy.

The two consortiums will each deliver a comprehensive FEED package, led from their UK ‎offices, over the next 12 months. Following the completion of the FEED process, the two ‎consortiums will then submit engineering, procurement and construction (EPC) proposals for ‎the execution phase. As part of the final investment decision expected in 2023, a single ‎consortium will be selected to take the project forward into construction.

Louise Kingham, BP’s UK head of country and senior vice president of Europe, said: “Moving ‎to FEED is a major step forward for NZT Power and the ‎development of the NEP. This first-of-a-kind project has the ‎potential to deliver enough low carbon, flexible electricity to power around 1.3 million homes, ‎and can help secure Teesside’s position at the green heart of the country’s energy transition.”

For more information, please see here.

Map of Teesside and planned infrastructure (credit: BP)