BBVA participates in the financing of the UK’s first Carbon Capture and Storage projects

BBVA has acted as Mandated Lead Arranger and Hedging Bank in the approximately £8 billion project finance debt packages to partially fund the construction and operation of the Northern Endurance Partnership (sponsored by bp, Equinor, and TotalEnergies) and Net Zero Teesside Power (sponsored by bp and Equinor) projects. These landmark initiatives, strongly supported by the UK Government, are pivotal to the nation’s decarbonisation strategy.

Carbon capture stands out as a critical transition technology, with potential to scale up, capable of decarbonising the UK’s hardest-to-abate industrial emissions. By enabling substantial reductions in carbon emissions in a short timeframe, it plays an essential role in addressing the urgent need for climate action to mitigate the most catastrophic effects of global warming.

On one hand, sponsored by bp, Equinor and Total Energies, the Northern Endurance Partnership project represents a pioneering large-scale CO2 transportation and storage infrastructure. The purpose of this project is to transport and permanently store carbon emissions captured by its users from industrial facilities in the Teesside region, in the North East of England. The CO2 is transported 145km offshore to the Endurance aquifer storage site - located 1,300 metres beneath the seabed - for permanent storage. Excluding any potential future expansions, it is estimated that the project will securely store 4 million tonnes of CO2 per year.

On the other hand, the Net Zero Teesside Power project, sponsored by bp and Equinor, aspires to become the world's first gas-fired power plant equipped with carbon capture and storage technology. Construction is scheduled to commence in mid-2025, with operations expected to start in 2028. This strategic asset is designed to bolster the UK’s energy security by delivering up to 742MW of flexible, low-carbon power, equivalent to the average annual electricity needs of over one million UK households.

“BBVA is proud to support bp, Equinor, and TotalEnergies in the development of these groundbreaking projects, as well as to contribute to the UK Government’s decarbonisation strategy. This commitment underscores our dedication to scaling innovative clean technologies within the CCUS space, while also strengthening our leadership in the European project finance market,” stated Javier Rodriguez-Soler, Head of Sustainability and CIB at BBVA.

Through these projects, BBVA reinforces its commitment to advancing large-scale transitioning solutions, aligning with its sustainability objectives and further solidifying its position as a key player in the financing of the energy transition and cleantech.