• BP plans to sell part of its equity in two UK carbon capture projects after both reached financial close and moved into construction.
• The Northern Endurance Partnership is designed to store up to an initial 4 million tonnes of CO2 a year, supporting the UK’s industrial decarbonization agenda.
• Net Zero Teesside Power aims to become the world’s first gas-fired power plant with carbon capture, with power expected for about one million UK homes from 2028.

BP is preparing to sell stakes in two of the UK’s most important carbon capture projects, a move that could bring new investors into the country’s flagship industrial decarbonization program just as construction gets underway.

The oil major said on Thursday that it plans to sell a portion of its equity in the Net Zero Teesside Power project and the Northern Endurance Partnership in Northern England. BP did not disclose the size of the stakes it intends to sell. It also did not name potential buyers.

The decision comes after both projects reached major development points. For BP, the timing allows it to reduce exposure while keeping a role in assets that remain central to the UK’s carbon capture and storage strategy.

“As the NZT Power and NEP projects have reached major milestones, including financial close and the start of construction, BP considers this the right time to sell a portion of its equity in both projects,” it said in an emailed statement to Reuters.

UK Carbon Capture Moves From Plan To Construction

Carbon capture and storage has become a key part of the UK’s plan to cut emissions from heavy industry and power generation. The technology traps carbon dioxide from facilities such as power plants and industrial sites. The captured CO2 is then transported and stored underground, preventing it from entering the atmosphere.

The policy logic is clear. Some industrial emissions are difficult to eliminate through electrification alone. For sectors tied to chemicals, refining, cement, power and other energy-intensive activity, carbon capture can offer a route to lower emissions without closing strategic industrial assets.

Northern England has become a focal point for that strategy. The region combines industrial demand, offshore storage potential and political pressure to protect jobs while cutting emissions. That makes the Teesside and Northern Endurance projects important beyond BP’s own portfolio.

NEP Targets 4 Million Tonnes Of CO2 Storage A Year

The Northern Endurance Partnership is being developed by BP alongside Equinor and TotalEnergies. The project is expected to permanently store up to an initial 4 million tonnes of carbon dioxide each year.

NEP is intended to provide the transport and storage backbone for industrial carbon capture projects in the region. That infrastructure role matters for investors and policymakers because capture projects only work at scale when pipelines, offshore storage and long-term liability frameworks are in place.

Shell was among the original partners in NEP but pulled out of the project in 2023. BP’s planned partial sale now adds another shift to the ownership structure, although the company has framed the decision around project maturity rather than withdrawal.

For the UK, the investor base will be important. Carbon capture projects carry large capital needs, long development timelines and policy exposure. Bringing in new partners could spread risk and bring fresh capital into a sector that still depends heavily on government support, regulated returns and credible offtake arrangements.

RELATED ARTICLE: bp and JERA to Launch JERA Nex bp, a 13GW Global Offshore Wind Venture

Net Zero Teesside Power Targets One Million Homes

Net Zero Teesside Power is a joint venture between BP and Equinor. The project is positioned as the world’s first gas-fired power plant with carbon capture.

The plant is expected to deliver power to an estimated one million UK homes from 2028. Its commercial relevance lies in the balance it seeks to strike. The UK needs reliable power while it adds more renewables to the grid. Gas with carbon capture is being presented as one way to provide flexible generation with lower emissions than conventional gas plants.

For C-suite leaders and investors, the project will be closely watched. It sits at the intersection of energy security, carbon markets, infrastructure finance and industrial policy. If it works as planned, it could strengthen the case for carbon capture in other power systems. If costs rise or policy support weakens, it may reinforce investor caution.

Why The Sale Matters For Executives And Investors

BP’s planned stake sale reflects a broader shift in how energy majors manage transition assets. Companies want exposure to low-carbon infrastructure, but they also face pressure to control capital spending and improve returns.

For buyers, the opportunity may offer entry into UK-backed carbon capture infrastructure after key risks have started to narrow. Financial close and construction start both reduce uncertainty, although execution risk remains.

For policymakers, the sale will test market confidence in the UK’s carbon capture pipeline. The projects are not just corporate assets. They are part of a national strategy to decarbonize industrial clusters, maintain regional employment and attract private capital into climate infrastructure.

The next phase will show whether investors see UK carbon capture as a bankable growth market or a policy-dependent bet. Either way, BP’s move places Northern England at the center of a wider question facing global energy markets: who will finance the infrastructure needed to cut industrial emissions at scale?

ESG News Editorial Team

The ESG News Editorial Team is comprised of veteran financial journalists and sustainability analysts dedicated to providing real-time, objective reporting on global ESG regulations, climate finance, and corporate governance. Our desk monitors daily developments from the SEC, IFRS, CSRD and international regulatory bodies to ensure our 1M+ readers receive accurate, data-driven insights into the evolving sustainable investment landscape. Follow the ESG News Editorial Team for expert reporting on global sustainability standards, ESG disclosures, and climate policy. Access over 10,000 investigative reports and real-time updates.