Government green lights giant 295MW biomass plant

In a move timed to further underline its commitment to large-scale renewable energy project, the government yesterday accompanied the release of its new renewable energy strategy with the announcement of planning approval for the UK's largest biomass power plant.

Energy and climate change minister David Kidney said the government had granted approval to London-based MGT Power's plans for a 295MW wood fired power station at Teesport near Middlesbrough capable of providing energy for an estimated 600,000 homes.

"The Tees Renewable Energy Plant brings a range of economic and environmental benefits, not least creating new jobs at Teesport, and the use of clean technology will help reduce carbon emissions," he said. "Biomass generation, using sustainable sources, is starting to make a significant contribution to the UK’s energy market and will help us reach our renewable targets."

Chris Moore, Director of MGT Power, said that the company would now move to begin construction of the plant as soon as possible.

“The Government’s consent is welcome news as we are at an advanced stage with forestry establishment for fuel sourcing, and power plant procurement," he explained. "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."

The company said that the plant is expected to create 600 jobs during its three year construction period, as well as 150 permanent jobs during the station’s lifetime. It is also expected to reduce the UK's carbon emissions by 1.2m tonnes a year, and account for 5.5 per cent of the country's renewable electricity target for 2020.

The plant is to be fuelled by around 2.4m tonnes of woodchips each year, and MGT has partnered with forestry companies in North and South America and the Baltic States to ensure that the fuel stock it uses is sourced from sustainably managed forests.

The company insisted that the use of sustainably sourced wood chips meant that the plant would delivers 95 per cent net greenhouse gas savings in comparison to coal-fired plants.

Under its new renewable energy strategy, the government yesterday signalled that biomass power plants will play a major part in meeting its renewables targets, accounting for just under 15 per cent of the UK's renewable capacity energy by 2020.