Teesworks carbon capture and storage project gets a step closer with 'financial close'

The joint venture between Equinor, TotalEnergies and BP is a proposed gas power station with an enormous carbon capture, utilisation and storage (CCUS) facility which could potentially be used by other carbon-creating companies both at Teesworks, and across the wider Teesside area.

The CCUS element will trap harmful by-product gases, compress them, and store them in huge underground tanks beneath the North Sea. The fledgling technology is touted as an alternative to releasing carbon into the atmosphere.

Yesterday, the three energy companies announced financial close, which moves the project onto its next phase.

Construction can now commence from mid-2025 with the gas station expected to be operational from 2028.

Tees Valley Mayor Ben Houchen said: “This is yet another landmark moment in the development of a world-leading development right here in Teesside.

“This transformational project will deliver thousands of high-quality jobs for years to come and deliver incredible opportunities for our local workforce, especially our young people.

“We have set an example on how working with the private sector can bring massive benefits by moving quickly, delivering hugely complex projects and attracting investment on a scale not seen on Teesside since ICI.

“This decision means spades will soon be in the ground and people will be able to see for themselves how our area is being transformed.”

Equinor believes the CCUS could store up to 4m tonnes of captured carbon dioxide per year from three Teesside projects initially, before expanding to up to 23m tonnes by 2035.

“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,” Alex Grant, the company’s UK country manager, said.

“We look forward to working with the Government to deliver further low carbon projects across the UK including in the Humber and in Scotland.”