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24 min ago 3 min read
Multinational BP has confirmed its intention to sell stakes in two of its flagship UK carbon capture and storage (CCS) projects.
The energy major holds a 75% stake in Net Zero Teesside Power and 45% stake in Northern Endurance Partnership. No sales details were released.
Net Zero Teesside Power – the carbon capture project in partnership with Equinor – and Northern Endurance Partnership reached financial close in December 2024 and are now in construction, with start-up expected in 2028.
A BP spokesperson said, “As the Net Zero Teesside Power and Northern Endurance Partnership projects have reached major milestones, and the start of construction, BP considers this the right time to sell a portion of its equity in both projects and bring in additional partners to support long-term value creation.”
The move would enable BP to recycle capital and reduce its financial exposure as both projects enter a more capital-intensive phase.
The sale is designed to bring in long-term infrastructure investors who are better suited for the steady, long-term returns of utility-like carbon capture assets, allowing BP to maintain a leadership role with less equity.
The decision also reflects a broader strategic shift at BP to refocus on high-return oil and gas assets while adopting a capital-light approach to its energy transition portfolio.
The company has faced significant pressure from shareholders and activist investors to improve financial returns and boost share prices.
However BP recently reported strong Q1 2026 results, with an underlying profit of $3.2bn, more than doubling from the same period a year ago and beating analyst expectations of $2.63bn, driven by exceptional oil trading and higher oil and gas prices resulting from the Middle East conflict.
Net Zero Teesside Power, which would produce up to 742 MW of flexible, dispatchable low carbon power, aims to be the world’s first commercial-scale gas-fired power station with carbon capture, and up to 2 million tonnes of carbon dioxide per year will be captured at the plant.
The Northern Endurance Partnership will serve as the CO₂ transportation and storage backbone for the East Coast Cluster, eventually handling around 4 million tonnes of CO₂ annually.
The Northern Endurance Partnership to verify that the project’s construction and operation comply with the CO2 transport and storage licence granted by the UK government.
International infrastructure group Balfour Beatty was by Technip Energies to act as the construction partner for Net Zero Teesside Power last summer.
CCS is increasingly the when it comes to global investment opportunities, according to research from international law firm Pinsent Masons.
