UK shortlists BP and Equinor low-carbon gas-fired power generation projects for aid

Britain has shortlisted a project from BP and Equinor for state aid to build a large gas-fired power plant with carbon capture and storage (CCS), as the latest government selection cycle showed on Thursday.

The UK government has shortlisted eight projects that it says could help reduce the country’s carbon dioxide emissions and jump-start a hydrogen-based economy.

The Net Zero Teesside Power (NZT) project, a joint venture between BP and Equinor, aims to build an 860 megawatt (MW) gas-fired power plant that could supply low-carbon electricity to around 1.3 million homes.

Most of the carbon dioxide emissions will be captured and stored below the North Sea seabed, so this plant will be a first, the partners said.

Two supplier consortia, one led by Technip Energies and the other by Aker Solutions, are competing to supply the carbon capture technology and build the plant.

BP and Equinor expect to make the final investment decision in 2023.

Equinor’s other project, H2H Saltend, which involves building a gas-to-hydrogen plant with carbon capture at Saltend Chemicals Park near the city of Hull, was not selected.

Equinor did not immediately respond to a request for comment.

The UK government has said the list is not final and may be supplemented later by adding new projects as they become more viable.

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