26th Jun 2025 10:14
(Alliance News) - Balfour Beatty PLC on Thursday said it has been awarded a GBP833 million contract by Technip Energies NV to act as the construction partner for Net Zero Teesside Power.
In response, shares in the London-based infrastructure company rose 2.0% to 507.00 pence each in London on Thursday morning for a market value of GBP2.55 billion.
Net Zero Teesside Power is an onshore power, capture and compression project that is poised to be the world's first gas-fired power station with carbon capture and storage. It is a joint venture between London-based oil major BP PLC and Norwegian energy company Equinor ASA.
Balfour Beatty will work alongside French engineering and technology company Technip Energies and Massachusetts, US-based energy equipment manufacturing and services company GE Vernova Inc to construct the large-scale combined cycle gas-powered generation plant.
It will have the support of technology partner Shell Catalysts & Technologies, part of London-based oil major, Shell PLC.
In addition, Balfour Beatty will build the post-combustion carbon capture system, which is expected to capture up to two million tonnes of carbon dioxide per year, before it is compressed and fed directly into the offshore pipeline to be stored under the North Sea by the Northern Endurance Partnership, a joint venture among BP, Equinor and France's TotalEnergies SE.
Leo Quinn, Balfour Beatty's chief executive, said: "Net Zero Teesside Power is an ambitious scheme, forging the path towards the sustainable infrastructure of the future and positioning the UK as a leader in cleaner, greener energy consumption."
He noted the scheme will also play a "key role in boosting regional economic growth in the North-East of England; generating thousands of employment opportunities both in the immediate term and in the future."
The full value of the contract will go into Balfour Beatty's order book by the end of the second quarter 2025, with main construction expected to commence later this year and completion in 2028.
By Jeremy Cutler, Alliance News reporter
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