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Biomass plant construction confirmed

Biomass plant construction confirmed

A huge new biomass plant in Middlesbrough could begin construction as early as next month, after a deal was clinched between the developer and its private sector investor.

The Tees Renewable Energy Plant will be built at Tees Port's North Dock and will produce up to 299 MW of green energy a day, enough to meet the needs of 600,000 homes. It will provide 100 permanent jobs when complete, with 600 construction posts being created during the building phase.

MGT Teesside agreed the deal with Macquarie Capital Europe this week to ensure the power station goes ahead, with construction set to be completed by 2018. It has promised to ensure that, where possible, local suppliers and contractors are used.

A statement by MGT Teesside said: "The project will cost approximately £650 million to construct and will be built under a turn-key 'engineering, procurement and construction' contract by a consortium of Tecnicas Reunidas of Spain and Samsung Construction and Trading of South Korea."

Chief executive Ben Elsworth paid tribute to his company's shareholders for their determination and persistence to get the deal done.

He added "We are proud to be delivering a project which is not only low-carbon, but which will meaningfully add to the UK’s energy security at an important time."

Speaking for Macquarie Capital Europe's, head of Infrastructure, utilities and renewables Mark Dooley said the firm is "committed to supporting [the] UK’s move to green energy", with the new plant being a key element in bringing this about.

The UK has a target of generating 15 per cent of energy through green sources by 2020, and the new combined heat and power biomass plant will supply one per cent of that target.

It will work by burning wood chips and waste, which will be imported by ship straight to Tees Port from the United States.

Image: iStock

 

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