Plans to build a £500m biomass power station at Teesport have been given the go ahead.The scheme proposed by MGT Power has been granted consent by the government under the Electricity Act.
It will be one of the largest-ever biomass plants to be built in the world.
With a capacity of 295MW, the Tees Renewable Energy Plant will generate enough electricity for approximately 600,000 homes across the north east and will use around 2.4m tonnes of woodchips per year.
The plant will create 600 jobs during the three year construction period.
Chris Moore, director of MGT Power said: “The Government’s consent is welcome news as we are at an advanced stage with forestry establishment for fuel sourcing, and power plant procurement.
“We can now mandate our banks, conclude the financing and reach agreement with our preferred technology bidders. We are moving towards an early construction start with a high degree of confidence.
“Other similarly sized biomass plants are proposed in other parts of the country but our Teesport project is currently two years ahead of the pack and likely to be one of the first to be operational. It comes at a time when replacement UK energy generation capacity is urgently needed. We will continue to work closely with Redcar & Cleveland Council as well as PD Ports, the owners of Teesport, Renew Tees Valley and the local Trade Unions to complete the project.”
The plant will be built on a site next to Tees Dock at South Bank and is expected to be operational by late 2012.