Teesside’s growing role at the heart of the UK’s clean energy transition has taken another major step forward, with £1.5bn of contracts now awarded to UK businesses across two landmark carbon capture projects.
The East Coast Cluster, which brings together NZT Power and the Northern Endurance Partnership, says more than 230 sub-contracts have now been let, as construction activity gathers pace across one of the government’s first carbon capture, usage and storage clusters.
The latest milestone includes £500m of new awards secured through competitive tenders since the third quarter of 2025, underlining the accelerating scale of work on Teesside and beyond.
At the centre of the development is NZT Power, set to become the world’s first gas-fired power station with carbon capture and storage, alongside the Northern Endurance Partnership’s infrastructure, which will transport and store carbon dioxide for multiple projects across Teesside and Humberside.
Together, the schemes are on track to deliver more than 50% UK content during construction while creating and supporting more than 3,000 jobs.
A significant boost for the local economy has come with the award of the operations, engineering and maintenance contract to Teesside-based px Group. The company will recruit and employ an on-site team of around 100 people, including apprentices, while also drawing on the local supply chain for materials and maintenance services. Further long-term opportunities are expected as additional operations and maintenance contracts are awarded.
Ian Hunter, managing director, NZT Power, said: “Reaching £1.5bn of contracts awarded to UK businesses is a major milestone and a clear sign that this project is turning investment into real opportunities for British industry. From Teesside to suppliers across the country, companies are securing work, creating jobs and building the capabilities needed to deliver the UK’s clean energy transition.”
Rich Denny, managing director of NEP, said: “British business is stepping forward to help us deliver the UK’s first and largest CO₂ transportation and storage asset. Together, we are creating skilled jobs, accelerating the journey to net zero and boosting economic growth. This is just the beginning. As more capture projects connect to our network and we develop additional offshore storage, opportunities for the UK supply chain will continue to grow for years to come.”
The scale of delivery is reflected in the growing presence of major contractors across the region. The onshore power, capture and compression consortium, led by Technip Energies and including GE Vernova and construction partner Balfour Beatty, is now operating from 12,000 sq ft of office space at the Wilton Centre, close to the Teesworks site.
Balfour Beatty alone has already engaged more than 140 UK suppliers and is recruiting for a range of roles, including mechanical engineers, site engineers and temporary works coordinators. The company expects to employ 1,500 people at peak construction.
The impact is already being felt across the Teesside supply chain. Cullum Detuners, working from Stockton with fabrication support in Middlesbrough, will deliver high-specification flue gas ducting, supporting 40 fabricators over a 15-month period and creating 15 new roles.
Barrier Architectural Services, also based in Stockton, has secured the turbine hall HVAC package, while Coatham Coaches near Guisborough is providing park-and-ride services and has already created 15 additional jobs.
The projects are also drawing on specialist expertise from across the UK. Costain currently has around 200 people on site, alongside approximately 100 designers and engineers in Manchester, and has awarded 23 subcontracts to date, 90% of them to UK-based suppliers.
Among those is Adey Steel, which will fabricate six new steel bridges from its Loughborough base to support pipeline and high-voltage cable infrastructure.
Wood is delivering engineering, construction and project management services across multiple contractor offices and the site, with a third of its team currently based in the local area.
Saipem has also awarded contracts to a number of UK firms, including Stockton Drilling, which will play a key role in delivering pipeline, power cable and outlet facilities, with around 90% of the work carried out using local resources.
Further specialist contracts have gone to Engineering Services and Supplies, Ordtek and Weston Compliance Services.
Offshore, TechnipFMC will deliver the subsea injection system, with work taking place across several UK locations, including Newcastle, Evanton and Dunfermline. Fabrication of key components will be carried out at the Port of Nigg by Maraen Fabrication.
Alcatel Submarine Networks is responsible for the project’s power and communications cable, delivered from its Greenwich headquarters, with sub-contracts awarded to UK offshore specialists including Cathie Associates, EGS and Safelane.
UK contractors have been engaged for several years ahead of construction to identify opportunities, with further packages continuing to be listed on the North Sea Transition Authority’s Pathfinder portal.
Andy McDonald, MP for Middlesbrough and Thornaby East, said: “This is wonderful news for Teesside which will provide the opportunity of really good employment and training opportunities for around 100 people as well as bringing wider economic benefits under the multi-million pound contract. That it is being delivered by a Teesside company of 25 years standing in px Group, with the full confidence of Net Zero Teesside Power and the Northern Endurance Partnership, should be further cause for celebration.”
Ben Houchen, Tees Valley mayor, said: “This is fantastic news for Teesside and exactly what we want to see – major projects delivering for local people and local firms. “I’ve always been clear that when investment comes here, it must back local jobs and local businesses. Projects like this don’t come to Teesside by chance.
“They come because of the skills and experience we’ve built up over generations of work in industry, so it’s only right that local people and local firms are first in line to benefit. We’ve got the workforce, the capability and the know-how to deliver world-first projects like this, and it’s great that this deal means even more long-term, skilled jobs for local people close to home.”
Energy Minister Michael Shanks said: “Carbon capture, usage and storage is vital for Britain’s clean energy future. We are delivering first of a kind carbon capture projects in the UK, backed by £9.4bn over this parliament. This milestone demonstrates how our clean energy mission is driving investment, economic growth and supporting thousands of jobs in our industrial heartlands.”
Geoff Holmes, CEO, px Group, said: “We’re proud to be part of the NZT Power and NEP project because it’s about more than cutting carbon – it’s about investing in our people and our future. This work is creating new skills, new opportunities, and high-quality jobs across our workforce, while helping our business become more resilient and innovative. By acting now, we’re not only reducing emissions, we’re helping build a stronger, cleaner industrial future for the UK.”
Clive Williams, IPMT project manager for Wood, said: “Wood is proud to play a central role in supporting NZT Power and the NEP as the UK delivers its first commercial-scale CCUS network. This project strengthens our business, supports regional growth, and enables our teams to contribute directly to the UK’s net-zero future. Our commitment to local hiring, early-career development, and high-quality project delivery ensures we can bring the full breadth of Wood’s capability to this landmark project”
Stuart Stephens, specialist projects director at Stockton Drilling, said: “Stockton Drilling have genuine pride in working on the NEP project. We were involved during the concept works and FEED phases, helping to take the project into construction. This project is unique, and we are delighted to be selected to deliver the crucial landfall scope of this world-first project”.
Dave Mackay, general manager at Global Energy, said: “We are proud to deliver this project for our valued client TechnipFMC, once again demonstrating the strength and reliability of our fabrication expertise and facilities. Built on trust and proven delivery, our partnership reflects the confidence placed in us to provide high-quality, on-time solutions with an uncompromising focus on safety.”
Luana Duffe, executive vice president for new energy at TechnipFMC, said: “The progress on this groundbreaking project is driven by the outstanding work of our strong local presence, our pioneering technologies, and our iEPCI offering.
“Developing the first fully electric system for carbon transportation and storage marks a major milestone for both our company and the wider industry. It clearly demonstrates that the competencies built in traditional energies sit at the very heart of the energy transition.”
Local contract wins since the fourth quarter of 2025 include:
– Cullum Detuners – high specification flue gas ducting, supporting 40 fabricators and creating 15 new roles
– SPP Pumps – fire water pumps supply, supporting 50 jobs and apprenticeship growth
– Coatham Coaches – park and ride services, with 15 jobs created so far
– Barrier Architectural Services – turbine hall HVAC systems, supporting around 20 roles and creating five new jobs
– Costain – 200 on-site roles plus 100 designers and engineers, with 23 subcontractors engaged
– Adey Steel – fabrication of six steel bridges for pipeline and HV infrastructure
– Wood – engineering, construction and project management services with growing local workforce
– Stockton Drilling – pipeline, power cable and outlet facilities, supporting 35 jobs
– Engineering Services and Supplies, Ordtek, Weston Compliance Services – specialist services contracts
– TechnipFMC – offshore subsea injection system across multiple UK locations
– Maraen Fabrication – fabrication of subsea structures at Port of Nigg
– Alcatel Submarine Networks – power and communications cable delivery, with UK subcontractors engaged
– Cathie Associates – geotechnical consulting support from Newcastle office
