£4billion green energy boost for Teesside
BP and two other oil giants will today sign £4bn of deals – a major step forward in turning teesside into a green energy powerhouse.
It will be the biggest investment for generations in the region, which was once dominated by the now defunct steel industry and chemical plants owned by former British titan ici.
Ftse 100 oil major BP is ploughing large sums into the area as part of a plan to invest £18bn in the UK by 2030.
Nine contractors, including construction firm costain and telecoms operator alcatel, are today being signed up.
Liberty steel in nearby hartlepool will be named as one of the contractors. it will supply onshore and offshore pipes. the news will be welcomed by the tories, including Prime Minister rishi sunak whose constituency is nearby in richmond, as a fillip for a red Wall area.
Ben houchen, the conservative tees Valley mayor, said: ‘this is the biggest investment in teesside since ici.’
The contractors will be working on two projects. net Zero teesside Power is a joint venture with equinor of norway.
It aims to be the world’s first commercial scale gas-fired power station using carbon capture and hopes to produce enough green electricity for 1.3m homes. Up to 3,000 jobs could be created in construction, and another 1,000 to run it.
The northern endurance Partnership will involve BP working with equinor and total of France. it is developing cO2 transport and storage in the north sea.
BP and its partners hope the Government will give the green light to the contracts by september and that the projects will be open for business from 2027.
Houchen added: ‘Our area is now the world-leading centre in developing the clean, green industries of the future, which... will deliver highly- skilled, wellpaid jobs.’ he said it will benefit companies ‘up and down the local supply chain’.
Martin curnow, at Liberty Pipes hartlepool, said it was ‘extremely proud to have been selected’. BP’s plans include two hydrogen ventures. One is for green hydrogen where the gas is produced by splitting water into hydrogen and oxygen using renewable electricity. the other is ‘blue’ where hydrogen is made using natural gas.
It is one of several firms investing billions of pounds into the 4,500 acre site of the old steelworks at redcar, now known as teesworks. that redevelopment has, however, been mired in controversy.
A probe found no evidence of corruption or illegality by south tees development corporation, chaired by houchen. Michael Gove, the Levelling Up secretary has asked the mayor for a report by the autumn on how he will improve the governance of the complex regeneration scheme.