Net Zero Teesside Power (NZT Power) is a collaboration between bp and Equinor to develop a 742MW combined cycle gas turbine equipped with amine-based post-combustion carbon capture. Once operational, the combined cycle gas turbine electricity generating station could produce flexible, dispatchable low-carbon power equivalent to the average annual electricity requirements of more than 1 million UK homes. 

In March 2023, NZT Power was named by the Department for Energy Security and Net Zero (DESNZ) on the Track 1 Project Negotiation List alongside two other Teesside based carbon capture projects - H2 Teesside and Teesside Hydrogen – to be users of the transport and storage infrastructure provided by the Northern Endurance Partnership (NEP) within the East Coast Cluster. 

In December 2024 NZT Power announced financial close and entry into the execution phase with construction expected from mid-2025, with start-up expected in 2028.

The execution phase of NZT Power will progress in parallel with the Northern Endurance Partnership (NEP), who today also announced financial close and entry into the execution phase of the CO2 transportation and storage infrastructure to serve three initial carbon capture projects on Teesside as part of the East Coast Cluster. Building work on the two projects will be completed by nine leading engineering, procurement, and construction contractors across eight contract packages with a combined value of around £4bn. NZT Power could create and support more than 3,000 construction jobs and then generate 1,000 jobs annually during operations until 2050. 

Having approached NatWest for the Northern Endurance Project at around the same time, bp and Equinor also asked NatWest to support their NZT Power project. Upon successful completion of the transaction, NatWest will join lenders in a financing deal for NZT Power. 

Ian Hunter, Managing Director, Net Zero Teesside Power, said: “Today’s announcement is the culmination of years of work to make Net Zero Teesside Power a reality. As the project progresses into the execution phase, we look forward to delivering on our ambition to create and support thousands of jobs whilst generating flexible, dispatchable low-carbon power for the UK.”

Bruce Riley, Head of Energy Transition at NatWest, said: “We are delighted to be able to support the UK’s net zero journey by providing this financing package to NZT Power whose purpose aligns closely with our own values. Tackling climate change is of paramount importance to our business, our customers, and the economies we operate in, and we continue to support those on their journey towards sustainable operations and those, such as NZT, helping others to become more sustainable. Our involvement in this transaction is also testament to our commitment to offer £100 billion climate and sustainable funding and financing by the end of 2025 to help the UK economy achieve net zero.”