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The Northern Endurance Partnership enabling Net Zero Teesside and the East Coast Cluster

Northern Endurance Partnership (NEP), a joint venture between bp, Equinor, and TotalEnergies, is developing the onshore and offshore infrastructure needed to transport CO2 from carbon capture projects across Teesside and the Humber – collectively known as the East Coast Cluster - to secure storage in the North Sea. The infrastructure is crucial to achieving net zero in the UK’s most carbon intensive industrial regions.

NEP announced financial close, giving the green light to proceed to the execution phase of the UK’s first CO2 transportation and storage infrastructure network that will serve three initial carbon capture projects on Teesside: NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture. NEP expects to commence construction from the middle of 2025 with start-up expected in 2028.

Once operational, the infrastructure aims to transport and permanently store up to an initial 4 million tonnes of CO2 per year. The NEP, via the Endurance saline aquifer and adjacent stores, has access to around 1 billion tonnes of CO2. storage capacity.

NEP enables the East Coast Cluster, one of the first two carbon capture, usage, and storage (CCUS) clusters to be taken forward by the UK Government. Covering the industrial powerhouse regions of Teesside, and the Humber, the East Coast Cluster includes a diverse mix of carbon capture projects, including industrial carbon capture, low-carbon hydrogen production, negative emissions power, and power with carbon capture.  Future expansion of the East Coast Cluster across Teesside and the Humber could enable the transportation and permanent storage of up to an average of around 23 million tonnes of CO2 per year and help create and support an average of 25,000 jobs per year.

NZT Power, financed and constructed in parallel with the NEP Project, is a collaboration between sponsors bp and Equinor to develop one of the world’s first commercial scale gas-fired power stations with carbon capture. The 742MW combined cycle gas turbine utilises amine-based post-combustion carbon capture technology to provide responsive dispatchable clean power.

NatWest participates in financing package

Seeking a financing package for the initial phase of NEP, bp, Equinor and TotalEnergies approached NatWest at an early stage due to both our expertise in the European renewables market, and as a trusted relationship bank to the shareholders.

We joined a consortium of 21 other experienced lenders to raise a debt financing package, the largest for a CCUS project in Europe.

Financing helps position the UK as a leader in the energy transition and emerging global low-carbon and hydrogen market

Chris Daykin, Director, Northern Endurance Partnership, said: “This is a landmark moment in the development of CCS infrastructure and the UK’s ambition to reach net zero emissions by 2050. With joint backing from shareholders and the UK Government, Northern Endurance Partnership is entering its execution phase ahead of start-up expected in 2028.”

Bruce Riley, Head of Energy Transition, NatWest, said: “NatWest’s commitment to financing this flagship project demonstrates our support for the UK’s decarbonisation agenda and for our key sponsors’ energy transition journeys. This transaction is another example of NatWest’s determination to actively help build a greener economy by providing £100 billion climate and sustainable funding and financing to our customers by the end of 2025.”

Finance is subject to status. Security may be required. Product fees may apply.

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