The joint-venture scheme, led by British energy giant BP plus French and Norwegian peers TotalEnergies and Equinor, forms part of UK government plans for a net zero carbon economy by 2050.

The facilities, to be built in northern England by a date yet to be specified, come under the Net Zero Teesside Power and Northern Endurance Partnership banners.

The pair on Friday said they had "selected contractors for engineering, procurement, and construction contracts with a combined value of around pound4 billion".

"The selection of nine leading specialist contractors across eight contract packages is a major milestone for the Teesside-based projects, which would contribute to the UK's journey towards net zero emissions by 2050," the statement added.

Up to two million tonnes of CO2 would be captured annually before being transported and securely stored in subsea sites beneath the North Sea.

Companies awarded contracts included energy group Shell, infrastructure specialists Balfour Beatty and oil-services firm TechnipFMC.

"The selection of contractors is a major step forward for Net Zero Teesside Power," said Ian Hunter, managing director at Net Zero Teesside Power.

"We have selected world-class partners who have the experience and capability needed to deliver."

Chris Daykin of Northern Endurance Partnership, added that "selection of contractors is a clear signal of momentum".

Friday's announcement comes after British Prime Minister Rishi Sunak's government this week pledged to build new gas-fired power stations to boost energy security.

At the same time, the UK is rolling out low-carbon energies such as nuclear, solar and wind power in a strategy to combat sky-high domestic electricity and gas bills, which rocketed after key producer Russia invaded Ukraine in early 2022.

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BP

TotalEnergies

Equinor

Shell

TechnipFMC