BP Starts Race For US$1.3 billion Teeside CCS Construction Deal

Supermajor BP has selected two consortiums to participate in an FEED ‎competition aimed at developing one of UK’s first decarbonised industrial ‎clusters.

BP said that the winner of the FEED competition will take the Net Zero Teesside Power project and the Northern Endurance ‎Partnership’s carbon compression infrastructure towards construction.

Both projects are BP-operated, located in Teesside, and the winner of the FEED competition will be selected in 2023.

Investing in carbon capture, usage ‎, and storage (CCUS) is a key point of the UK government’s ten-point plan for a green industrial ‎revolution, announced in November 2020.

In October 2021, the UK government selected the Northern Endurance Partnership’s East ‎Coast Cluster as one of the first two clusters to be taken forward as part of its carbon capture ‎and storage (CCUS) cluster sequencing process.

The Northern Endurance partnership 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 groups will now design and submit development plans for NZT Power’s proposed ‎power station and carbon capture plant as well as NEP’s planned Teesside high-pressure CO2 compression and export facilities.‎

The first of the two consortiums is the one consisting of Technip Energies and General Electric. The group also includes Shell as a subcontractor for the provision of the licensed Cansolv CO2 capture ‎technology and Balfour Beatty as the nominated construction partner.‎

The other consists of Aker Solutions, Doosan Babcock, and Siemens Energy. It is led by Aker Solutions ‎and includes Aker Carbon Capture as a subcontractor for the provision of the licensed ‎CO2 capture technology.‎

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 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.

“Moving ‎to Front End Engineering Design is a major step forward for Net Zero Teesside Power and the ‎development of the Northern Endurance Partnership. 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,” Louise Kingham, BP’s UK head and senior vice president of Europe, said.

NZT Power, a joint venture between BP and Equinor, is a full-scale gas fired-power station fully ‎integrated with carbon capture. The project is expected to provide flexible, dispatchable low-carbon electricity to complement the growing deployment of intermittent forms of renewable ‎energy such as wind and solar.

The contracts also include FEED for NEP’s Teesside facilities that will gather and compress ‎CO2 from NZT Power and other regional sources and export it offshore for permanent sub-surface storage in the Endurance carbon store. NEP will also take CO2 captured from a range ‎of projects in the Humber region as part of the East Coast Cluster.

It is worth stating that the Northern Endurance ‎Partnership is a joint venture between BP, Equinor, National Grid Ventures, Shell, and ‎TotalEnergies.

The East Coast Cluster has the ‎potential to transport and store nearly 50 percent of all UK industrial cluster CO2 emissions, which is up to 27 million tons of CO2 emissions a year by 2035. In addition, it anticipates creating and ‎supporting an average of 25,000 jobs over 2023 to 2050, with approximately 41,000 jobs at ‎the project’s peak in 2026.

The Northern Endurance Partnership-led East Coast Cluster was in October named as a Track-1 ‎cluster in the first phase of the sequencing process and now NZT Power expects to submit a bid in January 2022 for selection as part of the phase-2 of the ‎UK government’s CCUS cluster sequencing process.

Source: Rigzone