UK-based Balfour Beatty awarded $1.14 billion contract to build new gas power plants

Technip Energies, a French energy company, awarded Balfour Beatty of Britain a contract worth 833 million pounds ($1.14 billion). The project involves the construction of a UK gas-fired power plant.

Balfour Beatty announced that construction on the plant, where 1,500 workers will be employed, will begin later this year and will end in 2028.

Why it's important

The British Government is pushing clean energy initiatives in order to reduce energy bills and decrease reliance on fossil fuels imported.

A strategy for the industry, made public this week, stated that the country would give energy-intensive companies exemptions and reduce their high energy costs.

CONTEXT

The British construction group and infrastructure company will collaborate with Technip, a U.S. based company GE Vernova and Technip to build the combined cycle gas-powered generator plant for Net Zero Teesside Power. This joint venture is between oil giant BP & Norwegian energy firm Equinor.

By the Numbers

The new power plant is expected to be completed in time to provide 742 megawatts (or the equivalent annual electricity requirement of over one million British households) of flexible and dispatchable low-carbon energy.

KEY QUOTES

Leo Quinn, CEO of Balfour Beatty said: "The scheme is not only a crucial driver for achieving net zero; it will also play an important role in boosting the regional economic growth of the North-East region of England. It will generate thousands of job opportunities in both the short and long term." Reporting by Yamini Kalya in Bengaluru, editing by Mrigank Dahniwala.

(source: Reuters)