£500m Teesport biomass plant vision moves a step closer to becoming reality

Government backs major low-carbon energy project :: Scheme would create more than 700 jobs if it were to go ahead

A major biomass plant at Teesport has moved a step closer to reality today.

MGT Power’s half-a-billion pound plant, which will create more than 700 jobs, has been included on a list of eight key projects released by the Government, aimed at unlocking billions in UK energy investment.

Today’s announcement means the 275 megawatt Tees Renewable Energy Plant (Tees REP) will receive a fixed strike price for the electricity it produces for 15 years.

It’s part of the Government’s “world leading electricity reforms”, and is designed to help developers of low-carbon electricity projects.

The contract MGT Power has secured is “vital to give investors the confidence they need to pay the up-front costs of major new infrastructure projects” claims the Government.

Now the project, which achieved full planning consent five years ago, has 12 months to achieve financial closure under the contract.

Ben Elsworth, chief executive of MGT Power, said: “This decision is a vote of confidence in our project.

“It’s what we’ve been expecting, and we’ve been working closely with DECC (Department of Energy and Climate Change) for some time on this.

“The investment contract, which is what has been announced today, gives us 12 months to get to financial close.

“There were 57 applications to the Government, and only eight have got investment contracts.

“We were fifth on that list, ours is a complex project and we have been developing it for a long time.

“Among other things, projects were scored on both the local and national benefits they will bring, technology advancement, and what the impacts are.”

The eight successful projects have been awarded contracts under the Final Investment Decision (FID) Enabling for Renewables process.

The Tees REP will create 600 construction and supply chain jobs and 150 permanent roles.

It will generate enough electricity to supply 600,000 homes and heat for nearby commercial users, and will “play a major part in the country’s energy security going forward” according to bosses.