BP sees investment decision on Teesside carbon capture projects in 2024
London, May 9 (Reuters) - BP expects to make a final investment decision in 2024 on a cluster of carbon capture projects in northern England, including a gas-fired power plant in Teesside, it said on Tuesday.
The British government chose BP's Net Zero Teesside (NZT) power plant among other projects in the region in March for the next phase of a government support programme to decarbonise industrial processes, prompting talks on commercial details. On Tuesday, the Department for Energy Security and NZT said it would take until mid-September to make a decision on whether to grant permission for the gas-fired power station, postponing a previous May deadline.
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When asked about the impact of the new permit deadline, a spokesperson for BP said: "The decision by the Secretary of State to set a new deadline of no later than 14 September 2023 for deciding this application does not impact timescales for Final Investment Decisions on either the NZT Power or NEP projects. We expect to make final investment decisions in 2024."
Carbon capture and storage projects aim to filter carbon emissions from industrial smokestacks before the planet-warming gases reach the atmosphere.
The carbon captured from the NZT power plant would be pumped through pipes and fed into the Endurance (NEP) carbon storage site in the North Sea. BP had previously pencilled in a 2023 final investment decision for the Endurance carbon storage site.
BP expects its spending to be divided equally between oil and gas and its energy transition businesses by 2030, with a total budget of up to $18 billion a year. Businesses, such as renewables and electric vehicle charging, account for around 30% of the current budget compared with 3% in 2019.
BP's partners for the NEP include Equinor and TotalEnergies. Shell pulled out of the project this year.
(Reporting by Shadia Nasralla; Editing by Sharon Singleton)