ESG Energy Transition 2025 – NZT Power & NEP, UK

The successful financial close at the end of last year (2024) of 2 landmark transactions – Net Zero Teesside Power (NZT Power) and Northern Endurance Partnership (NEP) were chosen to win the energy transition ESG award.

While being separate projects, NZT Power and Northern Endurance Partnership are intrinsically linked as a gas fired power plant (NZT) and the carbon capture and sequestration element (NEP).

One of the judges said of the duo: “The $10.97 billion financing for Net Zero Teesside Power and Northern Endurance Partnership in the UK sets new standards for CCUS projects of national strategic importance.

“Financing will cover a CCGT plant with integrated carbon capture, with CO2 feeding into a pipeline leading to permanent sequestration in an offshore site. This is a landmark development.”

The judges were all impressed with this transaction with one lauding it as “another first-of-a-kind for the UK” and another saying it represents a “milestone transaction in UK CCS”.

NEP is the UK’s first CCS project and the first of two Track 1 CO2 transportation and storage projects under the UK’s CCUS business model. At financial close, NEP was the only project developed under this framework.

NEP’s infrastructure enables NZT Power, a 742MW gas-fired power station with CCS, to supply flexible low-carbon power to the national grid.

It is expected to be the world’s first fully integrated gas-fired power and carbon capture project.

Both projects form part of the East Coast Cluster, a Track 1 CCS cluster selected by the UK government to support its net-zero emissions strategy.

NEP will transport millions of tonnes of CO2 through a 145km offshore pipeline to injection facilities located around 1,000 metres below the North Sea.

The projects are backed by strong business and risk profiles, and the sponsors – BP, Equinor and TotalEnergies – contribute significant power expertise.

The transactions represent a pioneering approach to environmental impact mitigation through the development of the UK's first operational CCS project.

NEP introduces an environmental framework combining large-scale industrial decarbonisation with secure geological storage.

NZT Power establishes the world's first fully integrated gas-fired power and carbon capture project, creating a novel ESG structure that transforms traditional fuel power generation into a low-carbon energy solution.

This integration represents an original approach to reconciling energy security with environmental responsibility within a single operational framework.

On the social front, the project contributes to a just and inclusive energy transition. It supports the retention of skilled jobs in traditional industries while creating 4,000 new roles in engineering, construction and low-carbon operations.

Located in Teesside – a region historically impacted by economic decline – the project brings significant investment and industrial revitalisation. It helps reduce regional inequalities and provides long-term opportunities through workforce training and education initiatives.

From a governance perspective, the deals exemplify best practice in ESG-aligned infrastructure delivery. They involve complex collaboration across government, industry and local communities.

The structure reflects clear accountability, strong risk management, and active stakeholder engagement. It sets a benchmark for future energy transition projects, showing how large-scale climate infrastructure can be delivered responsibly and transparently.

This transaction marks a critical step in the UK’s energy transition, with meaningful environmental, social, and economic impacts. It demonstrates how public and private sectors can align to accelerate decarbonisation at scale.