BP to sell stakes in flagship UK carbon capture projects in Northern England
Finance

BP to sell stakes in flagship UK carbon capture projects in Northern England

Published by Global Banking & Finance Review

Posted on May 7, 2026

2 min read

· Last updated: May 7, 2026

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BP Selling Stakes in Flagship UK Carbon Capture Projects in Northern England

BP's Strategic Move in Carbon Capture and Storage Initiatives

May 7 (Reuters) - BP said on Thursday it would sell stakes in two flagship UK carbon capture and storage projects, opening the door to new partners as construction starts at both sites.

The oil major said it plans to sell a portion of its equity in the Net Zero Teesside (NZT) Power project and the Northern Endurance Partnership project (NEP) in Northern England, without disclosing the size of the stakes on offer or potential buyers.

Key Details of the Stake Sale

Here are some details:

Milestones and Rationale for Stake Sale

• "As the NZT Power and NEP projects have reached major milestones, including financial close and the start of construction, BP considers this the right time to sell a portion of its equity in both projects," it said in an emailed statement to Reuters.

Understanding Carbon Capture Technology

• Carbon capture is the process of trapping carbon dioxide emissions from sources such as power plants, and storing them underground to prevent them from entering the atmosphere.

Project Partners and Capacity

NEP Project Collaboration

• Norwegian energy firm Equinor and TotalEnergies are partners with BP in the NEP project, which is expected to permanently store up to an initial 4 million tonnes of carbon dioxide per year.

NZT Power Project Overview

• The NZT Power project, a joint venture between BP and Equinor, is poised to be the world's first gas power plant with carbon capture, and deliver power to an estimated one million homes in the UK from 2028.

Changes in Project Partnerships

• Shell was also among the original partners in NEP, but pulled out of the project in 2023.

Reporting Credits

(Reporting by Yamini Kalia in Bengaluru and Stephanie Kelly in London; Editing by Shilpi Majumdar)

Key Takeaways

  • BP plans to divest stakes in NZT Power and NEP as both projects hit critical construction and financing milestones, signaling readiness for new partners (Source: Reuters, BP statement).
  • NZT Power, a JV between BP and Equinor, aims to be the world’s first gas power plant with CCS, delivering ~860MW—enough for ~1.3 million UK homes—and capturing up to 2Mt CO₂/year, with operations slated for 2028 (Sources: BP press releases, S&P Global).
  • NEP, backed by BP, Equinor and TotalEnergies, will provide CO₂ transport and storage for East Coast Cluster projects, expected to handle around 4Mt CO₂/year from 2027 (Sources: BP press release, BP site).

Frequently Asked Questions

What carbon capture projects is BP selling stakes in?
BP is selling stakes in the Net Zero Teesside (NZT) Power project and the Northern Endurance Partnership (NEP) project in Northern England.
Who are the partners in the Northern Endurance Partnership project?
BP's partners in the NEP project include Equinor and TotalEnergies.
What is the expected capacity of the NEP project?
The NEP project is expected to initially store up to 4 million tonnes of carbon dioxide annually.
What makes the NZT Power project significant?
The NZT Power project will be the world’s first gas power plant with carbon capture, set to deliver power to around one million UK homes from 2028.
Why is BP selling its stakes now?
BP considers this the right time to sell a portion of its equity as the projects have achieved key milestones, including financial close and construction start.

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