WORK to build a £160m North-East power station could start this year, The Northern Echo can reveal.

The Teesside Renewable Energy Plant will be based at Port Clarence, near Middlesbrough.

The 45-megawatt factory is expected to burn up to 325,000 tonnes of waste wood every year, delivering power for 50,000 homes.

About 50 permanent roles will be created to run operations, with the plant supporting up to 350 construction positions.

Wood will be taken from forest thinning, reclaimed timber and the construction and demolition sectors.

The plans, delivered through a partnership between Eco2 Limited and Temporis Capital, were previously approved by Stockton Council, and the site is expected to be operational by 2017.

Andrew Toft, Eco2’s technical director, told The Northern Echo work was being carried out to get the project moving.

He said: “Both Temporis and Eco2 are committed to the development of the plant.

“While obtaining planning consent last July was an important step towards construction and operation, the engineering and financing arrangements that underpin such a large investment are complex.

“Typically, it takes between 12 and 18 months for a project to move from planning consent into construction.

“There is still some work to be done but we are confident we can begin construction before the end of the year.”

Mr Toft also praised the plans potential impact on the jobs landscape.

He added: “This is an exciting time for the area to increase its contribution to the production of renewable energy and we are delighted to be able to progress the long-held ambition to bring this to Port Clarence.

“We want to maximise the opportunities it could generate, both in terms of employment and skills.”

Proposals to build a biomass factory on the site, which is next to Koppers UK chemical plant, were first revealed in 2009, but were dashed when the company behind it struggled to attract funding.

Bio Energy Investments had wanted to build a futuristic plant, designed by internationally-renowned Heatherwick Studio, to imitate South-West London's Battersea Power Station by creating an iconic feature.

The plans would have used nut husks from Malaysia, and fitted the factory with a volcano-shaped tower and viewing platforms, as well as soil stacked against its sides to turn the area into a park for walking and tobogganing.

Heatherwick later designed the London Olympic Games Cauldron, which was created in a former aircraft hangar by Stage One, in Tockwith, near Harrogate, in North Yorkshire.