A New Industrial Future
Tees Valley is the leading export-focused and energy-intensive industrial cluster in the UK. The region’s concentration of industry along the coastline makes us ideally positioned to deliver a low-carbon, industrial future and become a national strategic asset.
The emissions reduction required by 2050 under the Climate Change Act means that energy will need to be supplied almost entirely carbon free and, in order to achieve this, it is vital to have alternatives to carbon-based fuels, not just in industry but in our buildings, heating and transportation.
Tees Valley, with its mixture of energy production and uses, provides the ideal location for developing a UK take on the smart energy future which will be needed to meet our ambitious the targets set in Climate Change Act.
The recently announced Industrial Strategy Mission to create a net zero cluster by 2040 can be achieved in Tees Valley and is an ambition shared by both the public and private sector. The creation of the Teesside Collective demonstrates our early commitment to this mission, and the announcement of the Clean Gas Project, the only commercial energy decarbonisation project ready to go, highlights the confidence that global companies have in the region to deliver it, starting as early as the 2020s
Tees Valley presents a “no regrets” ready-made and cost-effective cluster which can achieve long-term decarbonisation at affordable cost. Not only is it geographically and industrially suited for large-scale decarbonisation, it is also home to the South Tees Development Corporation, the UK’s biggest development opportunity. The 4,500-acre site offers prime, developable land with deep water port access, close to the North Sea and as been dubbed Europe’s most exciting project.
There is increasing demand to build renewable energy assets, in particular offshore wind. The sector presents a wide range of exciting opportunities in Tees Valley, offering real growth potential for businesses taking advantage of the prime location and extensive facilities the area has to offer.
The region is ideally positioned for servicing the North Sea and offshore industries and has UK Government CORE status as a Centre for Offshore Renewable Engineering. This is in recognition of the area’s existing port infrastructure, available skills and supply chain and the designation will enable rapid growth in the offshore wind sector. There are around ten miles of operational river along the Tees, including the deepest port facilities on the East Coast and England’s largest exporting port. Tees Valley is in close proximity to strategic offshore wind sites and has access to around 10GW of wind farm development.
Carbon Capture, Utilisation and Storage
Carbon Capture, Utilisation and Storage is widely acknowleged as the only viable technology able to reduce industrial CO2 and achieve cost-effective decarbonisation across industry sectors. Tees Valley is already leading the way with the Tees Valley Cluster, a partnership of major global companies located in Tees Valley with a shared vision; to be the go-to location for future clean industrial growth and to create the UK’s first CCUS Industrial Zone.
With the Tees Valley Cluster, the area presents a ready-made, cost-effective solution to CCUS. The area has one of the highest concentrations of industry in the country and is close to North Sea carbon storage sites, meaning it is ideal for large-scale industrial decarbonisation.
Net Zero Teesside
Net Zero Teesside is a Carbon Capture, Utilisation and Storage (CCUS) project that aims to decarbonise a cluster of carbon-intensive businesses by as early as 2030 and deliver the UK’s first zero-carbon industrial cluster. Working in partnership with local industry and with committed, world class partners, the Project plans to capture up to 10 million tonnes of carbon dioxide emissions, the equivalent to the annual energy use of over 3 million UK homes.
Located in Teesside’s industrial cluster, Net Zero Teesside can play a significant role in local and national plans for regional development and in the UK’s industrial strategy for a low carbon Northern Powerhouse. During construction, the Project could enable an annual gross benefit of up to £450 million and support up to 5,500 direct jobs. The project can launch a green economy in the north east by supporting and safeguarding existing jobs, creating new jobs and driving growth in the local economy.
The area was recognised by the project as the best configuration for a CCUS cluster out of 50 other business models considered. The multibillion-pound project, the first of its kind in the world, is a major step forward for the region and will be the world’s first gas-powered energy plant to deploy full-chain CCUS at scale.
The project comprises of a consortium of five OGCI members – BP, ENI, Equinor, Shell and Total, with BP leading as operator
The CCUS network, once in place, will attract companies to the region that are seeking opportunities for either disposing of or utilising CO2
Hydrogen will play a huge part in reaching the Paris Agreement targets by 2050. More readily storable than electricity, hydrogen can be used to heat buildings – commercial and domestic – by industry, reducing emissions from heat, and in transport for rail and heavy goods vehicles.
Tees Valley is home to the UK’s largest merchant hydrogen plant, operated by BOC Linde. This produces more than half of the UK’s commercially available hydrogen and is integrated with a large operational Hydrogen Transport & Storage system across Tees Valley. In addition, hydrogen is also produced at a large scale by CF Fertilisers and SABIC Petrochemicals as part of their ongoing Teesside operations.
The presence of other global companies, such as Johnson Matthey, Jacobs and Wood, as well as other supply chain companies in the region, means Tees Valley has the industrial base to support a hydrogen economy and to become a National Hydrogen Hub for the UK.
In September 2020 it was announced by the Government that Tees Valley would be the base for the UK’s first Hydrogen Transport Centre. When established, the centre will lead research, development and testing of new hydrogen transport technologies, including for cars, buses, trains, lorries, boats and planes. Read more here.
Research, Technology and Innovation
Tees Valley is home to leading research and technology organisations, including the Materials Processing Institute, TWI and CPI, part of the Advanced Manufacturing Catapult, provide unparalleled expertise and support in developing new technologies and have the skills and track record in the development in clean technologies.
Teesside University, a leading institution in hydrogen-related research, is also there to provide the resource and backup needed to support innovative solutions in this fast-growing area.
The construction of MGT’s 300MW biomass power plant at Teesport, new capacity at North Tees at Eco2 and existing units at Sembcorp’s Wilton International site, means Tees Valley will become the UK’s second-largest biomass fueled electricity generator. The port provides ready access to biomass supplies, with opportunities for heat and power integration with industry.
Supported by the Heat Network Development Unit within BEIS, Tees Valley is developing large-scale heat networks which exploit the vast amounts of heat rejected by, or available from, the industrial processes in the region.
The area has led the development of a £40million District Energy Network Scheme, a pioneering project that will see the waste heat from local industry used to warm public sector buildings, delivering energy savings and significant carbon savings while reducing energy costs.
Schemes for Middlesbrough and Stockton are potentially viable and are being commercialised for investment. They will present significant further growth opportunities and will allow integration of renewable energy production including Anaerobic Digestion.
YOU CAN FIND OUT MORE BY DOWNLOADING OUR CLEAN GROWTH INVESTMENT PROSPECTUS