BP Plans to Reduce Stake in UK Carbon Capture Project

BP has announced its intention to sell down its stake in the Northern Endurance Partnership (NEP), a major UK carbon capture and storage (CCS) project. BP currently holds a 45% share in NEP, which also includes Equinor and TotalEnergies. The partnership is developing the Endurance CO2 storage site off the coast of Teesside in northeast England, with an initial capacity of 4 million tonnes of CO2 per annum.

Details of the Equity Reduction

BP's plans involve halving its stake in the Net Zero Teesside combined-cycle gas plant and divesting 20% of its interest in the NEP project developer. A BP spokesperson stated that since the projects have reached major milestones—including financial close and the start of construction—the company considers this the right time to sell a portion of its equity and bring in additional partners to support long-term value creation. The plans have reportedly been in development for some time, and BP remains committed to the project.

Project Status and Context

NEP was one of the first two CCS projects in the UK to reach final investment decisions and is viewed as a key anchor for future CCS market development. Both NEP and the combined-cycle gas plant are already under construction, with expected startup in 2028. BP began drilling CO2 storage wells in March as part of the Endurance store. The news follows Storegga's decision to sell its stake in the Acorn CCS project in Scotland, and Bloomberg has reported that BP is also considering selling down its UK North Sea upstream assets to reduce debt.

Government Support and Challenges

The UK government committed £22 billion ($28 billion) in 2024 for NEP and the HyNet development, which includes Eni's Liverpool Bay store, reflecting confidence in CCS as a critical pathway to achieving net-zero greenhouse gas emissions by 2050. However, the government has withdrawn its CCS targets, acknowledging that delays in the funding process mean the UK will not meet initial storage aims within the scheduled period.