Tees Valley EfW project shortlisted for BEIS CCS funding

The Tees Valley Energy Recovery Facility (TV ERF) has been shortlisted to progress to the next phase of the Government's Cluster Sequencing Process. The project will now enter a ‘due diligence’ process, after which it will negotiate with the Department for Business, Energy, and Industrial Strategy (BEIS) to secure funding.

TeesideRun by BEIS, Phase Two of the Cluster Sequencing Process will financially support the development and operation of Carbon Capture and Storage (CCS) and industrial carbon capture (ICC) projects. Two carbon capture clusters are eligible – the East Coast Cluster in the North-East and Hynet in the North-West.

Subject to progression and successful negotiations with BEIS, the chosen bidder will be required to develop and operate the necessary CCS infrastructure under the contract.

The TV ERF project has been developed by seven partner authorities in the North-East of England. The facility is expected to become operational in 2026, providing the areas with a municipal waste treatment solution that, according to TV ERF, has ‘the potential to become carbon negative’ if CCS is successfully deployed.

The project is one of 13 shortlisted for this next stage, although final funding approval will be subject to a decision by the Government under the new Conservative leader.

The facility will treat up to 450,000 tonnes of residual waste annually, generating ‘nearly 50MW of electricity’. Three firms – SUEZ, Viridor, and Green Recovery Projects Ltd (FCC and Icon Infrastructure) – are currently bidding to design, finance, build, and operate the facility, which will be situated at Teesworks on the site of the former British Steel works. The procurement process is being led by Hartlepool Borough Council on behalf of the project partners.

Hartlepool Managing Director, Denise McGuckin, commented: “We are thrilled that the Tees Valley Energy Recovery Facility project has been shortlisted by BEIS to progress to the next stage of the cluster sequencing process.

“This brings us a significant step closer to being able to deliver a zero-carbon waste treatment solution for more than a million and a half residents across the North-East – supporting the net-zero ambitions of the project partner authorities and making a contribution towards national net-zero targets.

“The project is due to become operational from 2026, which means that the TVERF could become one of the first facilities of its kind in the UK to deploy CCS infrastructure and we look forward to working with BEIS and other organisations in the East Coast Cluster to make this a reality.”

The shortlist for ICC also includes:

  • CF Fertilisers Billingham Ammonia CCS
  • Norsea Carbon Capture
  • Redcar Energy Centre
  • Teesside Hydrogen CO2 Capture
  • Humber Zero – Phillips 66 Humber Refinery
  • Prax Lindsey Oil Refinery Carbon Capture Project
  • ZerCaL250
  • Hanson Padeswood Cement Works carbon capture and storage project
  • Viridor Runcorn Industrial CCS
  • Protos Energy Recovery Facility
  • Buxton Lime Net Zero
  • Carbon Dioxide Capture Unit – EssarOil UK

Net Zero Teesside Power, Whitetail Clean Energy, and Keadby 3 Carbon Capture Power Station were shortlisted for the next stage of Power CCUS, alongside bpH2Teesside, H2NorthEast, and Hydrogen to Humber (H2H) Saltend for Hydrogen funding.

Commenting on the successful projects, Charlotte Rule, Climate and Energy Policy Advisor for the ESA, said: “We are very pleased to see a number of energy recovery projects shortlisted by BEIS to progress to the next stage of the cluster sequencing process.

“These projects are likely now to be among the first of their kind in the UK to deploy carbon capture and storage technology for energy recovery, which is an important and significant stride on our journey towards a net-zero recycling and waste management sector by 2040.

“It is therefore vital that the Government continues to back this process following the Conservative leadership race in the autumn and grasps the opportunity to support the ambitious decarbonisation of our sector (which accounts for eight per cent of UK emissions) with both hands.”