TEESSIDE will become a renewable energy capital after a 1,000-job project secured vital support.

The £600m Tees Renewable Energy Plant yesterday (Thursday, January 22) received crucial European Commission approval.

Bosses say the factory, planned for Teesport, between Redcar and Middlesbrough, will be one of the world’s largest biomass power stations, providing electricity for 600,000 homes.

Operated by MGT Teesside, a subsidiary of MGT Power, bosses previously told The Northern Echo the plant will burn wood chips and pellets imported from the US, with heat generated also going to industrial and commercial customers.

The site is expected to deliver 150 permanent positions across port handling and offloading work, and will support at least 600 construction jobs and 450 supply chain roles.

The factory will start delivering power to the National Grid by 2019.

The company last year signed with the Department of Energy and Climate Change (DECC) to guarantee a fixed price for electricity for 15 years, which the European Commission has approved.

Ben Elsworth, MGT Power’s chief executive, said: “This was the final regulatory hurdle to progressing the project, and we will now proceed as quickly as possible to begin construction.

“This was a long period of uncertainty, but we were always extremely confident we complied with all the applicable rules, and are relieved and excited to be able to finally move into the next stage.”

The scheme is one of eight Government-backed programmes aiming to support 8,500 jobs, attract £12bn of private sector investment and provide up to 14 per cent of the renewable electricity expected to be available by 2020.

Edward Davey, DECC secretary, said the Teesside site would be crucial to the UK’s future energy needs.

He said: “Teesside is now well placed to be a major hub in the green economy.

“Renewable electricity generation has been booming across the UK, and we are seeing record levels of renewable investment.

“By bringing together combined heat and power and biomass plant, the plant will create and support hundreds of jobs while cutting Britain’s carbon emissions.”

The development will be based in the constituency of Redcar MP Ian Swales, who has helped MGT Power for a number of years bring their vision to fruition.

He added: “I’m delighted this next step has been taken on the road to getting this large investment.

“I hope MGT can soon start construction and create the jobs promised.”

Other Government-backed energy projects include biomass conversion sites in Ashington, Northumberland, and Selby, North Yorkshire.