Balfour and Costain win vast power and carbon capture job

Aaron Morby 1 year ago
Share

Balfour Beatty and Costain are among a clutch of contractors to have secured work on Teesside to build the world’s first gas-fired power station with carbon capture.

Net Zero Teesside Power project
Net Zero Teesside Power project

Clients Net Zero Teesside Power and the Northern Endurance Partnership have selected contractors for engineering, procurement, and construction contracts with a combined value of around £4bn.

Nine leading specialist contractors will share eight contract packages subject to a final investment decision due to be taken before September.

Balfour Beatty is main construction partner to deliver the combined-cycle power station, integrated with carbon capture plant.

It will utilise modular construction techniques to build the M&E equipment and plant rooms off-site, in a controlled factory setting.

Costain will oversee and manage the engineering procurement and construction of the onshore CO2 gathering system serving the East Coast Cluster of industrial companies.  

Remediated site for the world’s first commercial scale gas-fired power and carbon capture project

Teesside power and carbon capture packages


  • Onshore Power, Capture and Compression – Technip Energies and GE Vernova consortium including Balfour Beatty as the construction partner
  • Onshore CO2 gathering system and gas connection – Costain
  • Linepipe – Onshore and Offshore – Marubeni-Itochu Tubulars Europe 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

The projects present a big opportunity for the UK supply chain. Selected contractors will continue working with the local and regional supply chain, with further engagement taking place over the coming weeks and months.

Carbon capture scheme comprises:


  • A CO2 gathering network of pipeline connections from industrial facilities on Teesside to transport the captured CO2
  • An 850MW combined cycle gas turbine electricity generating station, cooling water, gas and electricity grid connections and CO2 capture;
  • A CO2 gathering/booster station to receive the captured CO2 from the gathering network and CCGT generating station
  • An onshore section of a CO2 transport pipeline for the onward transport of the captured CO2 to a suitable offshore geological storage site in the North Sea.

Ian Hunter, Managing Director, Net Zero Teesside Power, said: “The selection of contractors is a major step forward for Net Zero Teesside Power. We have selected world-class partners who have the experience and capability needed to deliver. We aim to take final investment decision in September 2024 or before, after which we’d look forward to working with our EPC partners through the construction phase”.

Chris Daykin, General Manager, Northern Endurance Partnership, said: “The selection of contractors is a clear signal of momentum within the East Coast Cluster. The Northern Endurance Partnership’s CO2 pipelines are essential to connect carbon intensive projects to offshore storage and would play an important role in helping the region pursue its net zero plan”.

Latest news

Funding hurdle remains as Lower Thames Crossing gains consent

Government claims £9bn project may start in 2026 as private finance options explored
13 hours ago

Mace wins £600m Euston Tower overhaul

1970s tower's foundations and core to be retained as floor plates extended
8 hours ago

Wates submits plan for 1,000 homes Harrow council scheme

Former civic centre Poets' Corner site kicks off housing partnership
2 hours ago

Morgan Sindall upgrades forecast for next 12 months

Overbury fit-out arm gets off to a flying start in 2025
17 hours ago

Restructure underway at Henry Boot Construction

New management team restructures business after drop in turnover
17 hours ago

Government pledges £2bn stop-gap funding for 18,000 homes

Funding avoids cliff-edge in social housing delivery before new grant programme agreed
18 hours ago

Just two major new roads schemes to start this year

National Highways sets out one-year interim spending plan after RIS3 delay
18 hours ago

Plans go in for £400m GRAHAM Manchester site

Demolition and enabling works underway with main construction set to start next year
18 hours ago

Building safety levy rate set at up to £10,000 a home in London

Levy introduction pushed back a year to Autumn 2026 - list of new rates
1 day ago

BAM wins £100m revamp of Broadgate Tower in London

Front of tower 3-storey extension to use cross laminate time and re-used steel
2 days ago

£600m funding to train 60,000 construction workers

Government pledges massive cash injection to produce "site-ready" workers
3 days ago

Construction to start in May on £1bn port expansion

Work at London Gateway site will last four years
4 days ago

Utilities specialist Ipsum buys second power contractor

Acquisition of Wootton & Wootton strengthens service in Midlands and Wales
2 days ago

Councils will lose cash if they fail to fix potholes

Local authorities will have to publish road repair stats
2 days ago

Green light for London Euston Tower rebuild

British Land says nearly a third of original tower will be retained
5 days ago

Contractors struggling to keep-up with demand for data centres

More than half of clients fear supply chain will struggle
5 days ago

Robert De Niro’s Nobu backs Manchester super tower

76-storey skyscraper will be tallest outside of London
5 days ago

PAC warns post-Grenfell policies threaten new homes goal

Watchdog MPs warn new build rates are being hit by diversion of funds to safety remediation
5 days ago

400 schools and hospitals to get rooftop solar panels

£180m investment is the first major project for Great British Energy
5 days ago

Legendre UK to convert Diageo HQ into hotel

Work to start this year transforming former home of drinks giant
5 days ago

Glencar wins phase 2 of Harwell tech scheme

Tech Foundry West will create 70,000 sq ft of lab and manufacturing space
5 days ago

Beard breaks company record with latest results

Family-owned firm posts best results for 133 years
5 days ago

United Living buys street lighting contractor

North West's Jones acquisition also strengthens power distribution offer
6 days ago

Deal to start £1.1bn British Library extension

Japanese developer takes control with aim to start construction next year
6 days ago

Fraud warning over bogus site supplies orders

Site temporary protection specialist sounds alarm after foiling scammers
6 days ago

Plan for world’s tallest energy-positive tower in Birmingham

£60m solar clad 29-storey tower will produce more energy than it consumes
6 days ago

Costain to lead on nuclear fuel site upgrade

Programme delivery partner role for upgrade to infrastructure at Capenhurst site
6 days ago

Willmott Dixon wins £32m Doncaster digital tech hub

Construction to start next month on Gateway One scheme
6 days ago

Pickstock to build Stratford resi tower

Construction set to start next year by modular builder owner
6 days ago

ISG accountants face investigation over audit

Watchdog launches probe into final accounts for collapsed contractor
7 days ago

Contractor services