£4bn Teesworks energy project given green light by Government

The highly anticipated Net Zero Teesside project – set to bring thousands of jobs to our region – has today received the green light from Government, with work beginning by the end of the year.

The £4billion project – led by bp and Equinor – will establish the world’s first industrial-scale carbon capture, utilisation, and storage (CCUS) facility at Teesworks – further enhancing Teesside’s reputation as the “Silicon Valley of Net Zero”.

The confirmation of Government support will allow work to start by the end of this year – with operations expected to begin in 2027.

The project 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 860 megawatts of low carbon electricity – enough to power up to 1.3 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.

It follows years of tireless work by Tees Valley Mayor Ben Houchen in championing the transformation of Teesside into a global leader for green energy.

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.

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.

Mayor Houchen said: “This is a monumental day for Teesside and my proudest achievement since becoming Mayor, and I want to thank the Government for giving the green light to this project .

“The NZT project will provide power to 1.3million homes, help with energy security, but more importantly it will give generational job opportunities to local people as Teesworks becomes the new ICI – providing investment, training and well-paid jobs for local people.

“Teesworks has already transformed the site, secured billions of pounds of private investment and created thousands of good quality local jobs including the SeAH monopile offshore wind factory, the largest single investment by a South Korean company in the UK

“But this investment is on a scale not seen on Teesside since ICI. Teesside is no longer seen as an old industrial heartland in decline – we are now a global player leading the world once again and I’m delighted to deliver another promise as Mayor.

“This is a day that we look back on as the start of a golden generation for Teesside.”

Chris Musgrave OBE, Chairman of Teesworks Ltd, said: “This is fantastic news for Teesside. The Government’s support for Net Zero Teesside means real opportunities for local people – creating jobs, attracting investment, and making our region a leader in clean energy.

“Over the past few years, we’ve been clearing the former steelworks and preparing the site for projects like this. It’s a huge step towards a greener future for us all, and I’m proud that the Teesworks site will be at the heart of it.”

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

Teesside is now at the forefront of clean energy, boasting projects including dynamic battery storage, sustainable aviation fuels, and hydrogen fuel production.