BP to sell stakes in UK carbon capture projects

UK’s BP says it is looking at selling stakes in two of the UK’s most important carbon capture projects, a move that could bring new investors into the country’s flagship industrial decarbonisation programme just as construction has started on the projects.

The oil major said that it plans to sell a portion of its equity in the Net Zero Teesside Power project and the Northern Endurance Partnership in Northern England. BP did not disclose the size of the stakes it intends to sell.

The decision comes after both projects reached major development points. For BP, the timing allows it to reduce exposure while keeping a role in assets that remain central to the UK’s carbon capture and storage strategy.

Carbon capture and storage has become a key part of the UK’s plan to cut emissions from heavy industry and power generation. The technology traps carbon dioxide from facilities such as power plants and industrial sites. The captured CO2 is then transported and stored underground, preventing it from entering the atmosphere.

The policy logic is clear. Some industrial emissions are difficult to eliminate through electrification alone. For sectors tied to chemicals, refining, cement, power and other energy-intensive activity, carbon capture can offer a route to lower emissions without closing strategic industrial assets.

The Northern Endurance Partnership is being developed by BP alongside Equinor and TotalEnergies. The project is expected to permanently store up to an initial 4 million tonnes of CO2/year.

NEP is intended to provide the transport and storage backbone for industrial carbon capture projects in the region. Shell was among the original partners in NEP but pulled out of the project in 2023. BP’s planned partial sale now adds another shift to the ownership structure, although the company has framed the decision around project maturity rather than withdrawal.

Net Zero Teesside Power is a joint venture between BP and Equinor. The project is positioned as the world’s first gas-fired power plant with carbon capture.

The plant is expected to deliver power to an estimated one million UK homes from 2028. Its commercial relevance lies in the balance it seeks to strike. The UK needs reliable power while it adds more renewables to the grid. Gas with carbon capture is being presented as one way to provide flexible generation with lower emissions than conventional gas plants.