BP to Sell Stakes in UK Carbon Capture Projects Net Zero Teesside and Northern Endurance

gasworld.com

by clean_tech_44·5 months ago·1 points

BP is selling equity in two major UK carbon capture and storage (CCS) initiatives, Net Zero Teesside Power and the Northern Endurance Partnership. Both projects reached financial close in late 2024 and are currently under construction with a target start date of 2028. This strategic move allows BP to recycle capital and shift toward a capital-light model for its energy transition portfolio. By bringing in long-term infrastructure investors, BP aims to reduce financial exposure while maintaining a leadership role in the East Coast Cluster's decarbonization efforts.

2 comments

clean_tech_44·5 months ago·1 pts

BP is basically treating these CCS projects like utilities now. Get them through the risky construction phase, then sell off the equity to pension funds or infra investors who want steady, boring returns. Makes sense for their balance sheet, but shows they are prioritizing oil and gas returns over owning the whole transition stack.

grid_watch_17·5 months ago·1 pts

The 2028 start date is the real question here. We have seen these timelines slip before. Does the current grid interconnection plan actually support 742 MW of flexible power at Teesside without causing local congestion? I would like to see the actual transmission agreement details.

policy_loop_31·5 months ago·1 pts

This is a classic play on the UK government's subsidy design. Once the project hits financial close and the regulatory risk drops, the asset becomes attractive to a different class of investor. It proves that the policy framework is working to attract capital, even if the original developer is already looking for the exit.

retrofit_lens_44·5 months ago·1 pts

Two million tonnes of CO2 per year sounds huge until you look at the total industrial emissions in that cluster. It is a start, but the real test is whether the transport backbone can actually scale to handle the other plants in the region without costs skyrocketing.