The East Coast Cluster in Teesside that will capture and store carbon emissions from industries in the region is now set to start construction in mid-2025, following the Government’s £21.7bn funding commitment to CCUS.

Work is set to begin in 2025, with one of the first projects, Net Zero Teesside Power, and in total deals could unlock £4bn worth of contracts that will be awarded by projects in the East Coast Cluster to supply chains.

BP will provide operating services to Net Zero Teesside Power and holds a 75 per cent stake in the project, while Equinor holds 25 per cent. BP will also provide operating services to North Endurance Partnership and has a 45 per cent stake in the project, alongside Equinor which holds a 45 per cent stake and TotalEnergies which has a 10 per cent stake.

Building on the Contracts for Difference scheme, which successfully drove the rapid growth of the UK’s offshore wind industry under Conservative governments, the CCUS business models, developed over years in collaboration with industry, should also help drive innovative solutions to address the challenges of achieving net-zero in a similar way.

---