Global oil and gas giants team up in support of Teesside net zero cluster

The Oil and Gas Climate Initiative (OGCI) Climate Investments is forming of a consortium of its members to accelerate the development of the Net Zero Teesside project, the body announced today, bringing together BP, Eni, Equinor, Shell, and Total.

The consortium partners have committed to working with the UK government and local stakeholders to develop the Net Zero Teesside project, which will officially launch today with a view to delivering the UK's first zero carbon cluster.

Formerly known as the Clean Gas Project, the initiative aims to decarbonise a cluster of local carbon-intensive businesses using Carbon Capture, Utilisation, and Storage (CCUS) technologies, which would be supported by a transportation and storage system capable of gathering industrial CO2, compressing it, and storing it safely in a reservoir under the North Sea. From the mid-2020s, the Project plans to capture up to six million tonnes of carbon dioxide emissions each year, equivalent to the annual energy use of up to two million UK homes.

In addition, under the plans a combined cycle gas turbine (CCGT) facility with carbon capture technology would provide low carbon power as a complement to renewable energy sources and underpin the investment in the infrastructure.

The consortium firms will use their combined expertise in  CCUS technology and energy infrastructure to drive forward the project, OGCI Climate Investments CEO Pratima Rangarajan said.

"Net Zero Teesside is a demonstration of OGCI's commitment to accelerating CCUS on a global scale," Rangarajan said. "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."

The firms will work closely with the Tees Valley Mayor and Combined Authority to develop the project.

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 £3.2bn. 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."

The UK government has said it wants to support the development of a world-leading net zero cluster, capable of demonstrating how heavy industries could be decarbonised. As such, it is expected to invite bids for funding from a number of potential net zero cluster projects.