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NET ZERO

Creating the world’s first Net Zero industrial cluster by 2040 Foreword What the Cluster Offers

The has fast become the go-to region to develop clean gas, hydrogen The Tees Valley is leading the way in the clean, green energy revolution. It has been and low carbon technologies, our growing reputation as the UK’s premier location singled out by government as the place at the centre of the UK’s future economy due to for clean energy is evident in our recent successes. its optimism and ambition, and, backed by millions of pounds worth of investment and the UK’s largest freeport, it’s easy to see why.

A number of nationally significant and game- heavy-lift quay which is under development at Tees Valley presents a “no regrets” ready-made and the UK’s first hydrogen transport hub and bp’s “blue” changing projects are earmarked for development Teesworks. GE will begin construction in autumn cost-effective cluster which can achieve long-term hydrogen facility, set to be the largest in the UK. across Teesside, and with 2021 delivering 2,250 jobs and with the utilisation decarbonisation at affordable cost. Not only is it both many already under way creating a truly burgeoning of the new 1km quay and adjacent 125-acre geographically and industrially suited for large-scale This integrated approach to decarbonisation and net zero cluster. hardstanding area for logistical support. South Bank decarbonisation, it is also home to Teesworks, the UK’s puts the Tees Valley cluster at the forefront of the sector at Teesworks has planning permission for 4.5million largest Freeport. and boosts the region’s ambitions to become the UK’s In September 2020, it was announced that Tees Valley sq ft of manufacturing and industrial space at the clean energy powerhouse. would be home to the UK’s first Hydrogen Transport mouth of the , creating the UK’s premier The region has the UK’s most developed and deliverable Centre to lead the research, development and offshore wind location only 80 miles from Dogger carbon capture, utilisation and storage project, Net Zero testing of new technologies. With our region already Bank and within 24 hours’ sail time of 80% of the Teesside, led by bp and four other major oil and gas accounting for 50% of UK’s hydrogen it’s a no- North Sea’s wind farms. companies. The Tees Valley also produces more than brainer. Furthermore in March 2021, the government half of the UK’s hydrogen, making it a natural choice for announced a £3million boost to develop a hydrogen Net Zero Teesside has long been established as the hub for multimodal capabilities which could be driving force in delivering Teesside as the country’s operational by 2025 and create up to 10,000 jobs. first decarbonised industrial cluster. With the development of a new gas fired power station on the This signalling by the UK government is being former SSI Steelworks in and the adoption of backed by global firms such as bp as they have now carbon capture, utilisation and storage technologies, committed to develop the UK’s first and largest blue the region is well on track for delivery in 2030. hydrogen production facility in the Tees Valley. The The project was recently awarded an additional H2Teesside project has the opportunity to begin £52million to develop the underground infrastructure production in 2027 and further boosts our standing with the Northern Endurance Partnership for the nergy from as a clean energy powerhouse. Additionally, we have North Sea reservoir storage chambers. recently signed a memorandum of understanding io conomy aste with bp to explore the potential for green hydrogen. Our region’s net zero ambitions will create the jobs The Tees Valley is justly the UK’s capital for hydrogen. of the future and transform our economy. The Tees Valley is set to invest in a new Net Zero Innovation Centre in partnership with THE UK’S PREMIER . Our growing and influential LOCATION FOR CLEAN innovation hub, set to be a Centre of Excellence at uclear Teesside Advanced Manufacturing Park (TeesAMP), Industry torage ENERGY is supported by TWI and MPI.

I have long pioneered the virtues of a freeport policy in the wake of Brexit and the announcement that the UK’s largest would be right here on Teesside is testament to our standing with central government, Innovation ub and with Tees Valley being home to the UK’s largest ffshore ind omestic heat - UK and most connected industrial zone at Teesworks, we’re ready to take full advantage of the tax incentives, allowances and permissions it brings.

Our Teesside Freeport has been the catalyst for GE Renewable Energy’s commitment to building a multimillion-pound offshore wind turbine blade , manufacturing facility on the new South Bank Industry Transport the UK’s first Industry hydrogen transport hub roduction

3 | Net Zero Teesside Net Zero Teesside | 4 PRODUCES MORE IMPORTS 15% OF THAN ½ OF THE THE UK’S NATURAL Why Tees Valley UK’S HYDROGEN GAS

The Tees Valley is the leading export-focused and energy-intensive industrial cluster in the UK. Centred around a large port, it has easy access to the North Sea Basin, with its storage capabilities, and Dogger Bank, the world’s largest offshore wind development. ONE OF THE UK’S LARGEST PORTS WITH This makes the Tees Valley an ideal place for developing the world’s first net zero ACCESS TO THE NORTH SEA BASIN industrial cluster by 2040.

The area has a rich history of industry and It has the UK’s most well-connected freeport, innovation, complemented by a highly skilled and offering immediate connectivity via rail, road, sea THE UK’S MOST NORTHUMBRIAN readily available workforce, specialising in and air as well as an international airport providing DEVELOPED AND WATER AND manufacturing, engineering and offshore industries. a gateway to global markets. DELIVERABLE OTHERS OPERATE CCUS PROJECT LARGE-SCALE BIO- GAS PRODUCTION

ELECTRICALSTORAGE SOLAR PV PLANT

ELECTRICITY RENEWABLE ENERGY GRID

INDUSTRIAL NUCLEAR PRODUCTION POWER NET ZERO BIOMASS PLANT INNOVATION PLANT CENTRE ELECTRICAL DISTRIBUTION ENERGY FROM HYDROGEN WASTE PLANT STORAGE BIOGAS NET ZERO PORT C0 2 HYDROGEN PRODUCTION HYDROGEN PLANT CO 2 CONVERSION PLANT ELECTROLYSIS PLANT DISTRICT HEATING DISTRICT BIOGAS PLANT AIRPORT

COMMERCIAL NET ZERO & DOMESTIC WIND HEATING HYDROGEN POWER PLANT TURBINES TRANSPORT HUB At the heart of Teesside’s industrial zone is Teesworks, the UK’s largest freeport, unrivalled in size, scale and opportunity it is a diverse, DEEP multi-sector setting, bringing together industry leaders to power WELL Britain’s carbon capture capital. BIOFUEL PLANT

PIPELINE C0 2

4 | Net Zero Teesside Net Zero Teesside | 5 Carbon Capture, Hydrogen Utilisation and Storage

Carbon Capture, Utilisation and Storage (CCUS) is widely acknowledged as the only More readily storable than electricity, hydrogen can be used to heat buildings – viable technology able to reduce industrial CO₂ emissions and achieve cost-effective commercial and domestic – by industry, reducing emissions from heat and in transport decarbonisation across industry sectors. for rail and heavy goods vehicles.

The Tees Valley is home to Net Zero Teesside, the UK’s Partnership. Net Zero Teesside will see the development The Tees Valley leads the way in hydrogen production and storage, with 50% of the UK’s hydrogen being produced most developed and most deliverable CCUS project. The of an offshore pipeline that will capture carbon dioxide here. The investment being made in the region in hydrogen is second to none, with a number of exciting projects being consortium of some of the world’s largest oil companies emissions and transport them to be permanently stored delivered over the next ten years. led by bp, has partnered with Zero Carbon Humber, deep underground. a similar project, to form the Northern Endurance THE UK’S LARGEST MULTIBILLION-POUND £52MILLION SECURED “BLUE” HYDROGEN PIONEERING PROJECT PROJECT TO USE HYDROGEN PROJECT LED BY TO DELIVER THE IN THE EXISTING BP, WITH EQUINOR, PROJECT GAS NETWORK SHELL, TOTAL AND ENI AND DISTRIBUTE TWO HYDROGEN TO HOMES AND REFUELLING STATIONS BUSINESSES WILL STORE UP TO 6MT OF CO2 EACH YEAR – EQUIVALENT TO THE ANNUAL ENERGY USE OF MORE THAN 2MILLION HOMES

THE UK’S FIRST FULLY DECARBONISED NET ZERO PORT IN THE NEXT FIVE YEARS

WE PRODUCE MORE PRODUCE 1.8GW DIRECTLY EMPLOY £3MILLION FOR THE THAN HALF OF THE OF ZERO-CARBON 5,500 JOBS DURING UK’S FIRST HYDROGEN UK’S HYDROGEN POWER AND DELIVER CONSTRUCTION AND TRANSPORT HUB, HYDROGEN AT SCALE DELIVER £450MILLION CREATING 5,000 JOBS AND AT LOW COST TO THE UK ECONOMY £16MILLION HYDROGEN INNOVATION CAMPUS

6 | Net Zero Teesside Net Zero Teesside | 7 Offshore Teesside Freeport Wind and Teesworks

The Tees Valley is ideally positioned for servicing the North Sea and offshore industries. The Teesside Freeport is the UK’s largest, most-connected freeport. Covering 4,500 acres, including the Teesworks site, Teesside International Airport, Hartlepool Port, the Port of and Wilton International, it offers many advantages to businesses The region’s ambitions for this sector are reflected in storage and mobilisation facilities. Global offshore wind the investment in the area. Teesworks, the UK’s largest manufacturer GE Renewable Energy will build its new investing, including a package of tax reliefs, streamlined planning procedures and freeport will play a huge part in those ambitions. The multimillion-pound state-of-the-art wind turbine blade simplified customs procedures. planned redevelopment at Teesworks will see the manufacturing factory at Teesworks and, with £20million construction of a 1km quay to specifically service the of government backing, it is expected the site will house Teesworks sits at the heart of the Teesside Freeport. The new hydrogen facility, the largest of its type in the UK, and offshore energy sector. The quay will also provide up to three manufacturers to support the development of site is the UK’s biggest opportunity in the offshore and a multimillion-pound wind turbine manufacturing facility instant access to more than 500 acres of manufacturing, the next generation of offshore wind projects. renewable energy sector, unrivalled in its size, scale and from the world’s largest offshore wind company, GE opportunity compared with not just anywhere in the UK, Renewable Energy. It is also already home to deepest port but across Europe. on the east coast of , the world’s largest biomass powerplant, ’s effluent water Projects already confirmed on the site include Net Zero treatment facility and BOC, the UK’s biggest hydrogen Teesside, the UK’s most developed CCUS project, bp’s producer. MULTIMILLION-POUND INVESTMENT IN WIND TURBINE MANUFACTURING FACILITY BY WORLD’S BIGGEST OFFSHORE MANUFACTURER

INVESTMENT IN A NEW OFFSHORE WIND QUAY AT TEESWORKS

£3.2BILLION BOOST TO THE 80% OF ALL UK UK ECONOMY WIND FARMS REACHABLE WITHIN A 24-HOUR £220MILLION+ BACKING VESSEL TIME FROM GOVERNMENT

LOCATED 80 MILES £20MILLION FROM CREATE MORE THAN FROM THE WORLD’S GOVERNMENT FOR 18,000 JOBS OVER THE LARGEST WIND FARM, TEESSIDE OFFSHORE WIND NEXT 5 YEARS DOGGER BANK MANUFACTURING CENTRE COVERING 4,500 ACRES

9 | Net Zero Teesside Net Zero Teesside | 10 Bio Economy Research & Innovation

The Tees Valley presents the ideal location for the circular bio economy, paving the way Research & Technology organisations including CPI, part of the High Value for the manufacturing processes to be fully decarbonised and achieving net zero by 2040. Manufacturing Catapult, TWI and the Materials Processing Institute provide unparalleled expertise and support in the development of clean technologies.

The Tees Valley will see half of the output from the green electricity. Coupled with the development of large- world’s largest wind farm brought ashore at Redcar, scale industrial CCUS – Net Zero Teesside – which will Durham University’s Chair of Energy Systems leads the making it a key hub for decarbonised electricity. Along decarbonise existing hydrogen production, Tees Valley can cluster Decarbonisation Innovation Group looking at the with existing biomass power plants and nuclear power become a hub for production of low carbon hydrogen at future development of energy production and distribution from Hartlepool, Tees Valley has increasing amounts of massive scale for industry, transport and the gas grid. globally, specifically using hydrogen and CCUS.

Teesside University is a leading institution in hydrogen- related teaching and research, providing the resource and backup needed to support innovative solutions in low carbon technology. The recent investment in the Net Zero Innovation Hub, led by Teesside University and backed with £13million of investment, places the Tees Valley firmly at the heart of the green industrial revolution.

Johnson Matthey’s Advanced Methane Reformation Technology, the next generation hydrogen production IMPORT MANUFACTURE EXPORT technology, is also being developed in Tees Valley.

RECYCLING RAW MATERIAL STEEL FROM OIL AND GAS DECOMMISSIONING

EFFICIENT PRIVATE WIRE NETWORK GREENER PRODUCTION ACCESS FOR ONSITE RECYCLED MATERIALS ALL SITE USERS CAN BE USED IN A NET ZERO MANUFACTURING CLUSTER

TEES VALLEY Circular economy = up to 15% savings

GREENER ENERGY INPUT CARBON CAPTURE AND STORAGE USING WASTE AND REMOVES AND REUSES HYDROGEN REMAINING EMISSIONS

LOWER LESS REDUCED MORE COST NEED TO LOGISTICS LOCAL RECYCLING LEAVE SITE REQUIREMENTS JOBS LIVES

10 | Net Zero Teesside Net Zero Teesside | 11 Hartlepool

Stockton-on-Tees Redcar & Darlington Middlesbrough

For more detailed information, please get in touch with the Business Investment Team

T: 01642 524400 E: [email protected] www.teesinvest.com

TeesValleyCA @TeesValleyCA @TeesValleyCA