Costain Group
PLC
15 March
2024
Costain Selected As Key partner for Landmark Carbon Capture
Project
Costain
to manage onshore CO2 gathering systems for the East
Coast Cluster
Costain Group PLC ("Costain")
announces that it has been selected by Net Zero Teesside Power (NZT
Power) and the Northern Endurance Partnership (NEP) joint ventures,
as one of nine specialist partners for engineering, procurement,
and construction contracts with a combined value of around
£4bn.
Costain's involvement with NZT
Power, NEP and its partners is to oversee and manage the
engineering procurement and construction of the onshore
CO2 gathering system and associated utilities serving
the East Coast Cluster. The contracts are subject to the receipt of
regulatory clearances and final investment decisions (FID) being
taken in September 2024 or earlier. Following FID, the projects
would be aiming for commercial operations from
2027.
NZT Power, a joint venture between
bp and Equinor, could generate up to 860 megawatts of flexible,
dispatchable low-carbon power equivalent to the average electricity
requirements of around 1.3m UK homes. Up to 2m tonnes of
CO2 per year would be captured at the plant, and then
transported and securely stored by the NEP in subsea storage sites
beneath the North Sea.
NEP, a joint venture between bp,
Equinor, and TotalEnergies, is the CO2 transportation
and storage provider for the East Coast Cluster (ECC). The Teesside
onshore NEP infrastructure would serve the Teesside-based carbon
capture projects - NZT Power, H2Teesside and Teesside Hydrogen
CO2 Capture - that were selected for first connection to
the ECC by DESNZ in March 2023 as part of the UK's cluster
sequencing process for carbon capture usage and storage (CCUS). It
is anticipated that around 4m tonnes of CO2 per year
from these projects would be transported and stored from
2027.
Costain is a recognised leader in
energy infrastructure and in shaping energy transition solutions
through its leading process design and programme management
expertise.
Ian Hunter, managing director Net
Zero Teesside Power, said: "The selection of contractors is a major
step forward for Net Zero Teesside Power. We have selected
world-class partners who have the experience and capability needed
to deliver. We aim to take final investment decision in September
2024 or before, after which we'd look forward to working with our
EPC partners through the construction phase."
Chris Daykin, general manager,
Northern Endurance Partnership, said: "The selection of contractors
is a clear signal of momentum within the East Coast Cluster. The
Northern Endurance Partnership's CO2 pipelines are essential to
connect carbon intensive projects to offshore storage and would
play an important role in helping the region pursue its net zero
plan."
Alex Vaughan, CEO, Costain
said:
"This is an enormously important
step forward for the UK in safeguarding our planet and unlocking
sustainable economic growth and we are proud that Costain has been
selected to play an integral part in progressing the energy
transition and decarbonisation agenda. Having completed the
front-end engineering design (FEED) for this landmark scheme, we
look forward to playing a key role in its
implementation.
"Our team of experts are looking
forward to working with Net Zero Teesside Power and the Northern
Endurance Partnership to progress the decarbonisation of the
critical local industrial ecosystem on this pioneering industrial
cluster.
"This is a critical milestone for
the implementation of energy transition infrastructure; supporting
economic growth, tackling climate change and improving lives, as
outlined in the National Infrastructure Commission's recent Second
National Infrastructure Assessment."
Enquiries:
Investors and
analysts
paul.sharma@costain.com
Paul Sharma,
Costain
+44 (0) 7867 501188
Financial
media -
Headland
costain@headlandconsultancy.com
Andy
Rivett-Carnac
+44 (0) 7968 997 365
Charlie
Twigg
+44 (0) 7946 494
568
Notes to
editors
Costain helps to improve people's lives by
creating connected, sustainable infrastructure that enables people
and the planet to thrive. We shape, create and deliver pioneering
solutions that transform the performance of the infrastructure
ecosystem across the UK's transport, energy, water, and defence
markets.
We are organised around our customers
anticipating and solving their challenges and helping to improve
performance. By bringing together our unique mix of construction,
consulting and digital experts we engineer and deliver sustainable,
efficient and practical solutions.