UKRI funding furthers industrial decarbonisation of the Humber and Teesside

UK Research and Innovation (UKRI), in collaboration with Net Zero Teesside (NZT) Power and The Northern Endurance Partnership (NEP), has concluded a £52 million project, jointly financed under the Industrial Decarbonisation Challenge (IDC) initiative.

The competitive funding, first allocated to both projects in March 2021 from UKRI’s Industrial Strategy Challenge Fund (ISCF), has accelerated the development of onshore and offshore carbon capture utilisation and storage (CCUS) infrastructure for the East Coast Cluster, one of the UK’s first low-carbon industrial clusters.

Dr Bryony Livesey, Industrial Decarbonisation Challenge Director, said: “Together, Net Zero Teesside (NZT) Power and The Northern Endurance Partnership (NEP) represent two first-of-a-kind projects in the decarbonisation of UK industry. Funding administered by the Industrial Decarbonisation Challenge has helped advance these projects to new milestones, and I am exceptionally proud of the work and effort of my team and the diverse range of partners supporting the development of these projects.”

The design and development of NZT Power, the world’s first commercial-scale gas-fired power station with carbon capture and onshore pipeline infrastructure, has been supported with more than £28 million in ISCF funding. It is part of a decarbonised group of industries on Teesside that will share the CO2 transportation and storage infrastructure being developed by the Northern Endurance Partnership.

Ian Hunter, Managing Director, Net Zero Teesside Power, said: “We’re incredibly grateful for the funding provided by UKRI over the past two years as the project has progressed through several stages of Government assessment, culminating in its selection to enter negotiations for business model support. The UKRI funding has been crucial, allowing us to design and develop the world’s first commercial-scale gas-fired power station with carbon capture. Upon completion, NZT Power will provide enough low carbon electricity [750MW] to power up to 1.3m homes per year with up to two million tonnes of CO2 a year being captured and stored in the process.”

The Northern Endurance Partnership received £24 million in ISCF funding and has been able to award Front End Engineering Design (FEED) contracts for the onshore gathering network, the high-pressure compression station and the offshore pipeline and injection system. The funding has also enabled survey and geotechnical works to be completed on the offshore and onshore scopes, seismic data acquisition for the store and completion of an offshore geotechnical borehole using a jack-up rig.

Andy Lane, Managing Director of the Northern Endurance Partnership, said, “The ISCF funding has been critical in enabling the NEP to move forward at pace. During the two-year funding cycle, the East Coast Cluster was selected as one of the first low-carbon industrial clusters in the UK, three projects have moved into business model negotiations and our Front-End Engineering Design has been completed through multiple UK-based contractors in several different locations simultaneously. Thank you to UKRI for their confidence in the project and the crucial role the funding has played in its development.”

The funding has played an important role in moving both projects forward and finalising the initial scope of infrastructure delivery for the East Coast Cluster. Recently, the Department for Energy Security and Net Zero (DESNZ) announced that NZT Power and The NEP have entered negotiations with the UK Government for business model support.

With final investment decisions expected in 2023, the aim is that commercial operations will begin in 2027. It is expected that NZT Power will capture two million tonnes of CO2 annually and generate 750MW of flexible power, while NEP will transport and permanently store carbon from a range of emitters across Teesside and the Humber under the North Sea.

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