Balfour and Costain named on £4bn power station job

Balfour Beatty and Costain are among a host of contractors named on a set of works involving a new power station and carbon-capture scheme.

The £4bn package is to build a gas-fired power station in Teesside with a pipeline to a new storage facility.

Balfour Beatty was named as the consortium’s construction partner for its onshore power, capture and compression contract package (see list of contractors below). The contractor is joined by Shell, the technology licensor, and electrification specialist GE Vernova. Engineering contractor Technip Energies is also involved.

The power station is set to generate up to 860 megawatts of low-carbon power. Client Net Zero Teesside Power (NZT Power) said the station should produce enough energy to power about 1.3 million UK homes.

The plant should capture up to two million tonnes of carbon dioxide each year, which would then be transported to and stored in sites beneath the North Sea.

Costain, meanwhile, was named as the contractor on an onshore carbon dioxide-gathering system and gas-connection package.

NZT Power is a joint venture made up of British oil and gas company BP, and Norwegian energy firm Equinor.

The framework is set to support more than 3,000 construction jobs, with more than 1,000 jobs then created to run the facility until 2050.

The contract awards are subject to regulatory approval and final investment decisions by the client and UK government, which are planned for September 2024 at the latest. After that hurdle, NZT Power expects its first commercial operations to begin in 2027.

NZT Power managing director Ian Hunter said the appointment of contractors marked a “major step forward” for the project.

“We have selected world-class partners who have the experience and capability needed to deliver,” he added.

“We aim to take final investment decision[s] in September 2024 or before, after which we’d look forward to working with our EPC [engineering, procurement and construction] partners through the construction phase.”

The UK government has previously committed to reaching net zero by 2050.

Contract awarded (worth £4bn overall) Contractors
Onshore power, capture and compression Technip Energies and GE Vernova consortium including Balfour Beatty as the construction partner and Shell as the technology licensor
Onshore CO2-gathering system and gas connection Costain
Linepipe: onshore and offshore Marubeni-Itochu Tubulars Europe Plc with Liberty Steel Hartlepool, Corinth Pipeworks and Eisenbau Kramer as the nominated pipe-mills
Offshore pipeline, landfalls, onshore outlet facilities and water outfall Saipem
Offshore subsea injection system TechnipFMC
Power and communications cable Alcatel Submarine Networks
Offshore systems engineering Genesis
Integrated project-management team Wood


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