Teesside is experiencing unprecedented economic impact through massive investments in carbon capture technology, infrastructure, and digital innovation. The region stands at the forefront of the UK’s industrial renaissance with projects set to generate thousands of jobs and billions in economic value by 2025 and beyond.
Airport expansion unlocks new growth potential
A £12.5 million infrastructure investment at Teesside International Airport is set to transform the region’s connectivity and business capabilities. This significant funding will unlock additional hangar space, creating immediate construction jobs and long-term aviation-related employment opportunities.
The airport expansion represents more than just improved travel options. It establishes Teesside as a logistics and business hub, attracting companies that require efficient transportation links. The ripple effect extends to hospitality, retail, and service sectors throughout the region.
Net Zero Teesside: Economic powerhouse through decarbonization
The Net Zero Teesside initiative stands as the cornerstone of the region’s economic transformation. Between 2025 and 2035, this project alone will generate approximately £500 million in Gross Value Added annually while creating around 5,500 jobs each year.
The economic impact peaks around 2027, with projections showing £600 million in GVA and 7,500 jobs. This growth stems directly from the deployment of carbon capture, utilization, and storage technology. By 2040, the region will host 27.3 million tonnes per annum of CCUS capacity, 5.3 gigawatts of CCUS power, and significant hydrogen production facilities.
East Coast Cluster: Construction boom starting mid-2025
The East Coast Cluster represents another massive economic driver for Teesside. Construction begins in mid-2025, bringing immediate jobs in engineering, construction, and supporting services. The Net Zero Teesside Power project within this cluster will provide low-carbon energy for up to one million homes by 2028.
This project benefits from £21.7 billion in government funding committed to developing CCUS across the UK. Teesside’s strategic position makes it a primary beneficiary of this investment. The construction phase alone will create thousands of jobs, with permanent positions following as operations begin.
Tees Valley Investment Zone: Digital and creative sector growth
The Tees Valley Investment Zone launched in 2023 has already secured £80 million of a planned £160 million investment. This funding specifically targets digital, creative, and technology sectors in Middlesbrough and Hartlepool, diversifying Teesside’s economic base beyond traditional industries.
The investment zone is projected to create over 2,000 jobs and unlock an additional £175 million in investment over the next decade. The funding breakdown includes £29 million for business support, £11.6 million for research and innovation, and £2.6 million to address crime as an economic barrier. This comprehensive approach ensures sustainable growth across multiple sectors.
Resilient growth in a strong macroeconomic environment
Teesside’s tr ansformation occurs against a backdrop of national economic strength. The UK economy grew by 0.7% in the first quarter of 2025, exceeding forecasts and creating favorable conditions for continued investment in the region.
This macroeconomic stability reinforces investor confidence in Teesside projects. The combination of government backing, private investment, and economic growth creates a virtuous cycle that amplifies the impact of each individual project. Teesside now stands as a model for industrial regions transitioning to low-carbon, technology-driven economies while generating substantial economic benefits for local communities.