Standard Chartered Backs Carbon Capture and Storage Innovation in the UK’s East Coast Cluster
5 days agoStandard Chartered is proud to support the UK’s East Coast Cluster (ECC), a transformative UK Government backed initiative which places the country at the forefront of industrial decarbonisation and carbon capture and storage (CCS).
By contributing to financing two critical components and enablers of the East Coast Cluster, the Northern Endurance Partnership (NEP) and Net Zero Teesside Power (NZT Power), the Bank is helping facilitate the decarbonisation of hard-to-abate emitters in the region, in support of the UK’s net zero ambitions.
For the financing facilities of both NEP and NZT, of GBP4 billion each, Standard Chartered acted as the Mandated Lead Arranger & Hedging Bank.
About the East Coast Cluster
Led by BP, Equinor and TotalEnergies, the East Coast Cluster in Teesside and Humber industrial region in the UK is a collaboration between global energy leaders, regional industry and the UK government. Its aim is to capture and securely store up to 4 million tonnes of CO2 annually by 2030, equivalent to removing 1.5 million cars from the road each year.
NEP will develop and operate the transportation and storage infrastructure to collect CO2 from multiple sources in the Cluster, including NZT Power, and store it beneath the North Sea in an aquifer. NZT Power will become the UK’s first commercial scale gas-fired power plant with integrated carbon capture, capturing up to 2 million tonnes of CO2 annually while providing up to 742MW of dispatchable, low-carbon energy to the grid.
Pioneering the financing of CCS
As a global leader in transition finance, Standard Chartered is proud to help establish scalable models for CCS financing, recognizing CCS’s role as one the key tools available to achieve net zero goals. The East Coast Cluster demonstrates how public-private collaboration, innovative financing and robust technology can unlock the potential of CCS at scale.
Ben Daly, Global Head of Transition Finance, Standard Chartered, further details that “At Standard Chartered, we recognise the critical role of finance in catalysing the energy transition. The Bank’s role in financing the Northern Endurance Partnership and Net Zero Teesside Power underscores our commitment to supporting the transition of the real economy. The project will not only enable significant emissions reductions but also pave the way for the global adoption of CCS as a bankable solution for decarbonising the highest emitting sectors”.
“The East Coast Cluster represents the best of what public-private collaboration can achieve. By supporting projects like the Northern Endurance Partnership and Net Zero Teesside Power, we are helping unlock sustainable innovation and create economic opportunity. This new infrastructure project will redefine industrial decarbonisation while creating thousands of jobs and supporting the UK’s net zero goals.” adds Sridhar Nagarajan, Regional Head of Infrastructure and Development Finance, Europe and Americas, Standard Chartered.
“Supporting the energy transition and decarbonation journey of our clients across our markets is embedded in our energy sector growth strategy. Carbon capture and storage (CCS) and its financing are key to achieving net zero goals, alongside other solutions. We are proud to contribute to this transformative UK Government backed initiative which places the country at the forefront of industrial decarbonisation and CCS.” concludes Quentin Savinaud, Global Head, Energy Sector, Standard Chartered