Today in Teesside, UK, OGCI Climate Investments – the $1B+ investment fund of The Oil and Gas Climate Initiative – will announce the formation of a consortium of OGCI members – BP, Eni, Equinor, Shell and Total, with BP as operator – to accelerate the development of the Net Zero Teesside project, previously known as the Clean Gas Project.
- BP, Eni, Equinor, Shell and Total assume leadership of the Net Zero Teesside project, with BP as operator, transitioning the project from OGCI Climate Investments
- Net Zero Teesside to announce MoUs with 3 existing industrial partners to decarbonise local industry at the official launch event held in Middlesbrough
- An extensive impact assessment on the construction phase of the project estimates an annual gross benefit of up to £450 million for the Teesside region and the support of up to 5,500 direct jobs.
The partners bring global experience of carbon capture, utilisation and storage technology and are committed to working closely with the UK government and local stakeholders, including the Tees Valley Mayor and Combined Authority, to develop the Net Zero Teesside project to deliver the UK’s first zero carbon cluster. With the right government support the project has an ambitious yet achievable potential start-up date of the mid-2020s.
The project will decarbonise local industry by building a transportation and storage system to gather industrial CO2, compress it and store it safely in a reservoir under the North Sea. The transportation and storage infrastructure will encourage new investment in the region from industries that wish to store or use CO2. In addition, a combined cycle gas turbine (CCGT) facility with carbon capture technology will provide low carbon power as a complement to renewable energy sources and underpin the investment in the infrastructure.
Pratima Rangarajan, CEO of OGCI Climate Investments, said: “Net Zero Teesside is a demonstration of OGCI’s commitment to accelerating CCUS on a global scale. It’s the anchor project, first ideated at the UK Energy Technologies Institute (ETI), developed into an industrial carbon cluster within OGCI Climate Investments and now, the first hub within OGCI’s CCUS Kickstarter initiative. This transfer of ownership to the OGCI consortium is proof of how OGCI’s initiative is successfully supporting emerging hubs.”
Andy Lane, Managing Director of Net Zero Teesside, commented: “Its advantageous location, advanced planning stage, the expertise of our world class project partners and government support for decarbonisation in the UK mean Net Zero Teesside is uniquely positioned to become the UK’s first decarbonised cluster. The formation of such a powerful partnership led by BP demonstrates the industry’s commitment to the UK government’s net zero targets. We’re hugely excited to see Teesside back at the forefront of UK industry and want the project to progress further.”
Ben Houchen, Tees Valley Mayor, said: “Net Zero Teesside represents the next step in our ambitions for Teesside, Darlington and Hartlepool to become a pioneer in clean energy, driving almost half a billion pounds into the regional economy and boosting the wider UK by £3.2billion. This world-leading industrial-scale decarbonisation project will safeguard and create 5,500 good quality, well paid jobs for local people. It will act as a beacon for new technologies and further investment as other companies are attracted to our area, while helping the UK achieve its clean energy potential.”
Net Zero Teesside will also announce at its official launch event in Middlesbrough today that it has signed memorandums of understanding (MoUs) with 3 existing industrial partners demonstrating the strong local commitment to decarbonising existing local industry. The MOUs support the continued engagement between the parties in evaluating the technical and commercial case for capture of CO2 from the industrial plant for safe storage.
Attendees at the event including MPs, policy makers, business leaders and local stakeholders will hear from speakers about the significant role Net Zero Teesside will play in helping the UK reach its net zero 2050 greenhouse gas emissions target whilst delivering an annual gross benefit of up to £450 million for the Teesside region and the support of up to 5,500 direct jobs.
Net Zero Teesside would be the first major development to be based on the South Tees Development Corporation site. The launch event today comes just days after the Tees Valley Mayor struck a landmark deal to secure the land at the former SSI steelworks site and bring it back into public ownership, ready for future redevelopment.
ENDS
Notes to editors
About Net Zero Teesside:
Net Zero Teesside is a Carbon Capture, Utilisation and Storage (CCUS) project, based in Teesside in the North East of England. In partnership with local industry and with committed, world class partners, it aims to fully decarbonise a cluster of carbon-intensive businesses by as early as 2030. Net Zero Teesside is currently led by OGCI Climate Investments and has direct project support from five of OGCI’s members: BP, ENI, Equinor, Shell and Total. From the mid 2020s, the Project plans to capture up to 10 million tonnes of carbon dioxide emissions each year, equivalent to the annual energy use of up to 3 million homes in the UK. To learn more about Net Zero Teesside, please visit www.netzeroteesside.co.uk
About OGCI Climate Investments
OGCI Climate Investments is a $1B+ fund that invests in solutions to decarbonize sectors like oil and gas, industrials and commercial transport. We look for outcomes that reduce methane and carbon dioxide emissions, and that can recycle or store carbon dioxide. Achieving significant impact requires global implementation and commercial frameworks – at OGCI Climate Investments, we collaborate with innovators, investors and governments to fund and implement impactful solutions. To learn more about OGCI Climate Investments, please visit www.oilandgasclimateinitiative.com/climate-investments
About OGCI
The Oil and Gas Climate Initiative is a CEO-led consortium that aims to accelerate the industry response to climate change. OGCI member companies explicitly support the Paris Agreement and its goals. As leaders in the industry, accounting for over 30% of global operated oil and gas production, we aim to leverage our collective strength and expand the pace and scope of our transitions to a low-carbon future, so helping to achieve net zero emissions as early as possible. Our members collectively invest around $7B each year in low carbon solutions. OGCI Climate Investments, our $1B+ fund, invests in solutions to decarbonize sectors like oil and gas, industrials and commercial transport. To learn more about OGCI, please visit www.oilandgasclimateinitiative.com