BP and Equinor to build major carbon capture projects in North East

Some of the first projects in Britain to take carbon out of the atmosphere will go ahead in the north east of England after BP and other energy firms confirmed investments on Tuesday.

The so-called East Coast Cluster, which will capture emissions from industrial sites around Teesside and store them at a site in the North Sea, will begin construction in mid-2025.

It is expected the cluster will bring 2,000 jobs to the region, and £4 billion worth of contracts will be awarded to build them.

The cluster includes a project by BP and energy firm Equinor to build the world’s first gas-fired power station with carbon capture.

It is estimated the plant will deliver power to about one million homes when it starts operating in 2028.

BP holds a 75% stake in the project and Equinor the remaining 25%. The companies did not say how much they had invested in it.

Energy Secretary Ed Miliband said the move marked “a new era for clean energy in Britain”.

He added: “This is the Government’s mission to make the UK a clean energy superpower in action, replacing Britain’s energy insecurity with homegrown clean power that rebuilds the strength of our industrial heartlands.”

Carbon capture and storage (CCS) involves trapping carbon dioxide as it is emitted and pumping it underground.

Ministers have positioned it as a crucial part of the UK’s route to reaching net zero carbon emissions by 2050, and in October promised nearly £22 billion funding to develop projects.

Critics say it helps companies making money from fossil fuels prolong the lives of their carbon-emitting assets.

But groups including the Climate Change Committee, which advises the Government, have said it will be a key element in cutting greenhouse gases.

The other project in the cluster is a facility to store CO2 under the North Sea.

The pipes and storage units of the project, called Endurance, will start being installed 46 miles off the coast of Teesside, and the first gas injection could come as early as 2027.

It could ultimately store up to 100 million tonnes of CO2, equivalent to the amount given off by 58.8 million cars over the course of a year.

The project is also co-owned by BP and Equinor, and French energy giant TotalEnergies holds a 10% stake.

It is expected to serve more Teesside-based carbon capture projects as they are brought forward in the coming years.

The North Sea Transition Authority said a second permit could be granted to another project in the region in the coming months.

It is hoped that dozens of storage sites could be permitted every year.

Prime Minister Sir Keir Starmer said it was “only the start”, adding that the technology would eventually bring thousands more jobs across the North East.