BP seeks partners for UK carbon capture hub as Teesside work begins
By Axel Miller | 07 May 2026
Summary
BP plc is seeking new investment partners for its flagship carbon capture and storage (CCS) projects in northern England after reaching financial close and starting construction on key infrastructure. The projects include the Net Zero Teesside Power (NZT Power) plant and the Northern Endurance Partnership (NEP), which together form the backbone of the UK’s East Coast Cluster decarbonization strategy. BP’s move reflects a broader industry trend of recycling capital from large infrastructure projects into new low-carbon investments, while also testing investor appetite for large-scale carbon management assets.
LONDON, May 7, 2026 — BP plc is moving into the next phase of Britain’s industrial decarbonization push as construction begins on major carbon capture infrastructure in Teesside.
The company confirmed it is exploring the sale of partial stakes in its UK Track-1 carbon capture projects, including the Net Zero Teesside Power plant and the Northern Endurance Partnership transport and storage network.
The strategy is designed to bring in long-term infrastructure investors while allowing BP to recycle capital into additional low-carbon projects such as hydrogen, biofuels, and renewable energy.
Net Zero Teesside aims to become a major CCS power project
The Net Zero Teesside Power project, being developed with Equinor, is expected to generate up to 742 MW of flexible low-carbon electricity once operational later this decade. Earlier project designs referenced capacity closer to 860 MW, but updated public documentation places expected net output lower due to carbon capture integration and efficiency adjustments.
The plant is designed to capture up to 2 million tonnes of CO₂ annually, with a targeted carbon capture rate of around 95%.
Supporters argue the project could help stabilize the UK electricity grid by providing dispatchable power alongside intermittent renewable generation from wind and solar sources.
Northern Endurance Partnership forms the storage backbone
The Northern Endurance Partnership, backed by BP, Equinor, and TotalEnergies, will transport captured industrial emissions through offshore pipelines for permanent storage beneath the North Sea.
The project centers on the Endurance saline aquifer, located roughly 145 kilometers offshore from Teesside.
Initial storage capacity is expected to support around 4 million tonnes of CO₂ annually during the first phase, with expansion plans targeting up to 20 million tonnes per year in the 2030s as more industrial facilities connect to the East Coast Cluster.
The cluster is intended to support decarbonization across heavy industries including steel, chemicals, power generation, refining, and fertilizer production.
Investor appetite becomes the next test
BP’s stake-sale process is being closely watched across the global energy industry as a test of whether institutional investors are prepared to fund large-scale carbon management infrastructure over multi-decade timelines.
Carbon capture projects have historically faced criticism over costs, scalability, and long-term commercial viability. However, government-backed support mechanisms in the UK — including industrial carbon contracts and power support agreements — are designed to improve project economics and reduce investment risk.
Analysts say successful execution of the Teesside cluster could become a model for industrial decarbonization projects across Europe and Asia.
Why this matters
- Industrial decarbonization:
Carbon capture is increasingly viewed as one of the few viable pathways for reducing emissions from hard-to-abate sectors such as steel, cement, and chemicals. - Energy transition financing:
BP’s decision to recycle capital highlights how major energy firms are balancing shareholder returns with large-scale low-carbon investment programs. - Grid reliability:
Gas-fired generation paired with carbon capture may play a transitional role in maintaining stable electricity supply during the broader renewable energy shift.
FAQs
Q1. Is BP exiting these projects?
No. BP is expected to remain a major shareholder and lead operator while bringing in additional financial and infrastructure partners.
Q2. Where will the captured carbon be stored?
The CO₂ will be transported offshore and injected deep beneath the North Sea into geological formations designed for long-term storage.
Q3. Why is carbon capture important for heavy industry?
Industries such as steel, chemicals, and cement are difficult to fully electrify. CCS allows these sectors to reduce emissions while continuing operations.