11 December 2024

Costain receives confirmation to proceed on East Coast Cluster

Contract progresses to execution phase for Teesside CO₂ gathering system

Costain Group PLC ("Costain") announces it has received confirmation to proceed to the execution phase on two landmark projects for Net Zero Teesside Power (NZT Power) and the Northern Endurance Partnership (NEP).

Following Government approval of the final investment decision, Costain's delivery partner role will see it deliver and manage the engineering, procurement and construction (EPCm) of the onshore CO₂ gathering system for NEP, and associated utilities for NZT Power, as part of this £4bn investment programme.

Costain is one of nine leading companies selected by the bp joint ventures to deliver the schemes. NZT Power aims to be the world's first gas-fired power station with carbon capture and storage, while NEP will provide the CO₂ transportation and storage infrastructure for three Teesside-based carbon capture projects.

The confirmation to proceed follows Costain's successful completion of the front-end engineering design (FEED) for the carbon capture network, and its appointment to deliver the FEED for the East Coast Cluster's hydrogen network.

Construction is expected to commence from mid-2025, with start-up expected in 2028.

Alex Vaughan, CEO of Costain, said:

"The energy transition is a vital part of the UK's move to net zero, and our strategy is focussed on shaping, creating and delivering critical pieces of national infrastructure like this one.

"Another key element of our approach is growing our consultancy business, and being selected as delivery partner on such a pioneering project is recognition of our expertise. We look forward to supporting bp and its partners to deliver a world-class CO₂ gathering network."

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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.