The United Kingdom’s first large scale carbon capture projects have received the green light. BP, along with Equinor and Total reaching a Final Investment Decision (FID) for the two projects.

Known as The Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power), the two projects will proceed to the execution phase. The green signal comes after selecting nine contractors in March 2024.

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Execution Phase Details

Construction for the two projects will begin in 2025. Operations for the projects is expected to commence in 2028. NEP will transport and store CO2 from the East Coast Cluster. The offshore pipeline network spanning 145 kilometers will help transport nearly 4 million tonnes of CO2.

NZT Power, a joint venture similar to NEP, will capture two million tonnes of CO2 annually. With a capacity of 860 megawatts, NZT Power might generate over 3,000 construction jobs and 1,000 operational positions.

Also read: Nuada and Carbfix Partner to Offer Innovative Carbon Capture and Storage Solutions

Support for Transition

BP’s senior vice president of hydrogen and CCS, Felipe Arbelaez, emphasized the collaboration between public and private sectors to deliver low carbon energy projects. He stressed these projects’ importance and value for the region, partners, and customers.

Energy Secretary Ed Miliband lauded the announcement. He referred to it as a new era for clean energy in Britain. He highlighted that the projects would enhance multiple aspects. The aspects cover energy security and job creation along with supporting the UK’s aim of becoming a clean energy superpower

UK’s Carbon Capture Goals

The CCS projects are part of the UK government’s broader investment plan involving $28 billion. The plan involves the development of two carbon capture clusters over the next 25 years. The East Coast Cluster is the first, with HyNet Liverpool Bay expected to follow soon. The UK aims to store nearly 20 to 30 million tonnes of CO2 annually until the end of the decade.

The European Bank for Reconstruction and Development is partnering with NLB Banka Prishtina to increase its green investment initiatives in Kosovo. This partnership will allocate up to €10 million to green investments in micro, small, and medium-sized enterprises (MSMEs).

Also read: EBRD and NIB Support Vilnius’ Green Public Transport with €80 Million Co-Investment

Supporting Energy Efficiency and Renewable Energy in Homes

Under GEFF, the EBRD will provide a €5 million senior loan to residents, housing collectives, public sector, and construction companies. This will enable them to invest in energy-efficient and renewable energy solutions. Borrowers can upgrade their homes and buildings using green technologies and innovative solutions.

Homeowners who install certified green technolgies will benefit from incentive payments covering uptp 20% of their loan amount. Additional assistance will be available to help borrowers choose energy-efficient equipment. The European Union (EU) supports this effort through the Western Balkans Investment Framework, with contributions from Japan and Denmark.

Also read: EBRD Partners with Romania to Advance Renewable Energy Auctions

Driving Kosovo’s Green Energy Transition

Sergiy Maslichenko, EBRD Head of Kosovo, said, “We are proud to drive the green energy transition in Kosovo, where it is much needed. With the country’s heavy reliance on coal generation, our green investments play a critical role in reducing greenhouse gas emissions and setting a benchmark for a sustainable future. In collaboration with NLB Banka Prishtina, we aim to expand access to green financing in various sectors, empowering homeowners and MSMEs to embrace renewable energy and energy efficiency.”

The second project, part of the EBRD’s SME Go Green programme, includes another senior loan of up to €5 million. This initiative will help MSMEs invest in energy efficiency, resource efficiency, and renewable energy. The initiative will allocate 30% of the funds to agribusinesses and their value chains and 25% to women-led businesses.

The program offers incentives, providing 15% in agribusiness and 10% for other eligible green economy investments. The program will issue these payments after completing and validating the projects. Through customized capacity-building training, EU-funded technical assistance will further support local firms and NLB Banka Prishtina.