Teesworks has welcomed the announcement that the ground-breaking Net Zero Teesside Power and Northern Endurance Partnership projects are to move into the next phase of development.

Net Zero Teesside Power, which aims to be the world’s first gas-fired power station with carbon capture and storage, will be built parallel with the Northern Endurance Partnerships’ transportation and storage infrastructure. The confirmed contracts have a combined value of around £4bn – further enhancing Teesside’s reputation as the “Silicon Valley of Net Zero”.

Project partners – bp, Equinor and TotalEnergies – today announced financial close and entry into the execution phase for the highly anticipated project, creating and supporting 4,000 well-paid, highly skilled local jobs.

The decision paves the way for construction to commence from mid-2025, with start-up expected in 2028.

Net Zero Teesside Power will be located at Teesworks and the announcement follows the successful completion of a major demolition programme and land remediation at the former Redcar steelworks to prepare the site for construction.

Teesworks Chairman Chris Musgrave OBE said: “The movement into the next phase of development for these projects are a clear demonstration of the positive impact Teesworks is having on the local economy by delivering huge investment and thousands of jobs.

“Teesworks has successfully completed the remediation of land for Net Zero Teesside Power, which allows partners to move quickly and begin construction of a world-leading project in 2025.”

Net Zero Teesside Power is set to create 3,000 construction jobs and 1,000 permanent jobs once the plant is operational. It is expected to add up to £300million to the economy per year.

The proposed power station will generate up to 742 megawatts of low carbon electricity – equivalent to the average annual electricity requirements of more than 1 million UK homes.

Up to two million tonnes of CO2 emissions from the power station will be captured each year – emissions which would otherwise be released into the atmosphere.

The captured CO2 will then be transported by the Northern Endurance Partnership (NEP) by pipeline to a geological storage site under the North Sea, where it will be permanently and safely stored.

Northern Endurance Partnership has also announced financial close on its CO2 transportation and storage infrastructure supporting three carbon capture projects on Teesside.

The latest announcements follow confirmation of Government support for the project in October.

The progress follows years of work by Tees Valley Mayor Ben Houchen in developing Teesside into a global leader for low-carbon energy projects.

Since taking office in 2017, Mayor Houchen has led efforts to attract substantial public and private investment to the region, laying the groundwork for a future defined by clean industries and sustainable development.

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 that 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.”

Net Zero Teesside is the latest milestone in a long-term strategy to revitalise the region’s economy and create thousands of high-quality jobs for local people.

Over the next decade, projects on Teesworks will generate a significant boost in local revenues, with income from business rates expected to increase by £79m annually once large-scale projects become fully operational.

Other clean energy projects under development at Teesworks also include dynamic battery storage and sustainable aviation fuels production.