RCS - Costain Group PLC - Key Partner for Landmark Carbon Capture Project

CostainAnnouncement

15/03/2024 08:30

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RNS Number : 0302H  Costain Group PLC  15 March 2024

 

Costain Group PLC

15 March 2024

Costain Selected As Key partner for Landmark Carbon Capture Project

Costain to manage onshore CO(2) 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 CO(2)
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 CO(2) 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 CO(2)
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 CO(2) 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 CO(2) 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 (mailto:costain@headlandconsultancy.com)

Andy
Rivett-Carnac
+44 (0) 7968 997 365

Charlie
Twigg
+44 (0) 7946 494 568 (tel:+44%20(0)79%204649%204568)

 

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.

 

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