Government has shown some support for first-of-a-kind projects in Tees Valley but more will be needed
Skills development and community engagement are critical, with initiatives like the Tees Valley Net Zero Industry Scholarship helping build the necessary workforce pipeline
While offshore wind projects show tangible progress, setbacks such as BP dropping its green hydrogen facility highlight the ongoing commercial challenges
Success will require partnerships between government, industry, and academia to maximise investments and ensure local communities benefit from the transformation

Tees Valley has taken a leading role in delivering plans for the UK’s energy transition – but more needs to be done.

Attendees at this week’s E-FWD Momentum Morning called for industry and government to “just get moving” on the ambitious plans. Building on the region’s industrial heritage will speed progress, but care must be taken to bring workers and communities along.

Discussions under the Chatham House rule highlighted ways Tees Valley could advance. The talks highlighted the progress in the area, but also the persistent challenges in transforming the region into a new energy hub.

FOAK

Government support for Tees Valley enables first-of-a-kind projects through its backing for three parts of the East Coast Cluster.

NZT Power, H2Teesside and Teesside Hydrogen CO2 Capture won government support in October, underpinning their business case. This will allow them to move into construction, expected this year.

One event participant said it was time to stop debating technologies.

“We welcome the plan, now it’s time to get it implemented. Let’s not waste more time debating about whether it’s achievable or not by 2030. There have been success stories,” he said.

The speaker contrasted the UK’s approach with Germany’s focused technology bets. “We’ve got a multitude in the mix. But if we had started two or three [hydrogen] projects five years ago, we would have a lot more experience. We’d be able to have a better discussion about the affordability of these technologies.”

Another speaker at the event said GB Energy could help with new plans. “There should be a balance, where there is substantial hard work on existing technologies, but also looking to the future. It should be investing in near-field technologies first and then the high-risk, high-gain research.”

GB Energy enables the government to implement its plans, but industry demands more clarity about its goals.

Floating offshore wind could be an area for the new state-backed entity to develop. This has struggled amid higher prices and uncertainty. If GB Energy could take some of the risk, it would have a better chance of bringing in support while proving new technology.

Other areas for GB Energy involvement could be hydrogen and long-duration energy storage.

Two people in front of blue backdrop, with camera equipment around them — *E-FWD’s Sepi Golzari-Munro talks to Siemens Energy Vice President Darren Davidson*

Skills and communities

When first-of-a-kind projects win backing, it gives companies the confidence to invest in supporting activities. This means investing in training and education.

Northern Endurance Partnership (NEP) and Net Zero Teesside (NZT) Power said in late February they would provide financial support for local development.

The Tees Valley Net Zero Industry Scholarship has attracted over 100 applications. It aims to train the next generation of workers for Tees Valley’s net zero ambitions.

An audience member commented on the scheme, emphasising the need for a “pipeline of talent” for the East Coast Cluster plans. It will involve accessible opportunities, full-time college education, on-site work experience and a weekly stipend.

“We have to be starting the conversation now and thinking about the skills now to ensure that we’ve got those talents coming through to fill positions. Otherwise, it’ll creep up on us and all of a sudden we won’t be able to fill the job opportunities” from the new energy plans in the region.

In five or 10 years, CCS may feel more normal, even though it seems novel now.

It’s not just apprenticeships and manufacturing that provide opportunities in the region.

Close up of an arm holding a Momentum Morning Tees Valley flyer

Jobs and their wider impact

“Government is focused on factory type jobs, [but] there’s a huge amount of people in the UK who are in areas such as project implementation: design engineers, system engineers, protection and control engineers. Those are high-end jobs. It’s about the whole jobs chain,” said a speaker.

Creating diverse jobs offering lifetime employment is essential to demonstrate the rewards for local people and communities.

“We’ve got to get it right. There is no point, from a Teesside perspective … if Teessiders aren’t the beneficiaries of the employment opportunities,” another speaker said. “There is a social purpose, as well as an economic and energy purpose, of what we’re doing here.”

Social challenges are evident. The local authority has reported communities across Tees Valley with “high deprivation levels” and unemployment.

The UK’s energy transition plans offer a way forward. A speaker stated there is an “extraordinary potential” for this state-backed effort to drive a “transformation” in the area’s fortunes.

Tees Valley’s industrial past fosters a higher acceptance of industry needs than other UK areas.

“People are used to such technologies in their backyard,” a participant said. “But it’s also about engagement. Projects that engage with communities and talk about technology implementation and risks, and how they are mitigated, are key to driving social acceptance.”

Concrete evidence

Driving past the Teesworks site, major changes are underway. For instance, SeAH Wind is a significant player in the area, planning to open its monopile facility soon.

The same week E-FWD held its Momentum Morning, SeAH struck a deal with subcontractors – including Mammoet, Glacier Energy and Hutchinson Engineering – to support the Hornsea 3 offshore wind project.

Hornsea 3 will start producing power in 2027 and will be the world’s largest wind farm.

While the UK – and Tees Valley – have made significant progress in delivering wind targets, other sectors have struggled.

BP has scrapped plans for an 80 MW green hydrogen facility in Teesside: HyGreen. It would have been one of the UK’s biggest such facilities and was expected to reach 500 MW by 2030.

The company is sticking with its blue hydrogen plans in the region, but the commercial viability of green hydrogen is a bigger challenge. BP has rowed back on some of its ambitious transition targets, choosing to focus on its hydrocarbon plans.

Two people in camera, sitting against blue backdrop with big white arrows — *E-FWD’s Ed Reed and Quanta EPC’s Graham Puntis*

Winnowing the offering

A speaker at the event stressed the need for diverse solutions in energy plans. “We need them all at the end of the day”, the speaker said. “We need a portfolio approach to decarbonisation. There is no best technology for a specific industry.”

A portfolio approach means not all parts will succeed. Tees Valley aims for major expansion in new energy industries, but challenges are apparent.

“If we see something that doesn’t quite work, we need to learn why it doesn’t work, how we can improve it. At the end of the day, we need to get on and implement what we can.”

Tees Valley’s energy future needs a balance of ambition and practicality, industrial support and community rewards. Government has made some significant gestures of support for the region, particularly the ambitious CCS plans, but more public funding is constrained given the economic challenges.

The path forward will likely need innovative partnerships between government, industry, devolved authorities and academia. Collaboration must focus on building up existing investments, leveraging private capital and ensuring skills development keeps pace with technological change.

If successful, Tees Valley could serve as a national model for how traditional industrial regions can thrive in the new energy economy.

DC Thomson CGO Owen Wyatt addresses the Tees Valley Momentum Morning, speaking into mic at front of room with people — *DC Thomson CGO Owen Wyatt addresses the Tees Valley Momentum Morning*

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