A WOOD-FIRED biomass power station will create up to 500 jobs if approved.

The £200m plant, proposed for the site of a former power station, on the Billingham Reach Industrial Estate, near Stockton, by renewable energy firm Gaia Power, would provide enough electricity a year to supply more than 80,000 homes.

Gaia, based in Yarm, also near Stockton, said 50 jobs would be created at the plant, along with a further 50 supply-chain positions.

Construction of the plant – if approved by Stockton Borough Council – would create up to 400 jobs.

It is proposed that about 275,000 tonnes of recycled wood would be burnt at the plant in chipped form, saving about 436,000 tonnes of carbon dioxide annually, compared to a coal-fired power station of a similar size.

The wood would include construction and demolition waste, furniture offcuts, such as chipboard and MDF, and used pallets – all of which ordinarily go into landfill.

Michael Fox, Gaia Power founder and chairman, said: “It is a very exciting development and one which will help to cement the Tees Valley’s growing reputation for green energy development.”

Mr Fox was the founder and former deputy chairman of Ensus, which is investing £245m in building the largest bio ethanol plant in the EU, in Wilton, near Stockton. It is due to start operating this year.

Richard Poundford, head of regeneration and economic development at the borough council, said: “The council would welcome employment and renewable energy opportunities, subject to planning, that a scheme of this nature could offer.”

Neil Kenley, strategic investment and marketing director for Tees Valley Regeneration, said: “This is exactly the type of business we work so hard to attract to the area and the fact that Gaia Power could come here adds more credence to the fact that the Tees Valley is becoming a hub for new energy companies.”

Gaia will open the plans up for public consultation from today, at Port Clarence Community Centre, Middlesbrough from noon to 8pm. It expects to submit a planning application in the next six to eight weeks.

A spokeswoman for the firm said the development would not need formal approval from the Secretary of State, adding that it could be operational in the second half of 2012.

What are the advantages of the plant?

Who is funding the project?

Funding will be from the private sector. The firm has already received indications of significant support from potential debt and equity providers, who remain attracted to the sector despite the current economic climate.

What type of jobs will be available?

The job types will vary from degree- qualified engineers to qualified technicians, skilled labour and unskilled labour, as well as administrative and managerial roles. Opportunities for apprenticeships will also be created through the placing of a construction contract.

Why use wood as fuel?

Wood is a renewable fuel that is considered to be carbon neutral because, when it is burnt, it does not release more carbon dioxide than when it rots. The use of recycled wood in power generation not only reduces the consumption of fossil fuels, but it also reduces the burden on landfill with the potential for release of methane as it decomposes.

What will be produced when the wood is burnt?

Emissions will be mainly hot air, with almost all airborne particles being captured by the filters.

What about the ash that the burning process creates?

The bulk of the ash is non-hazardous and will be collected in sealed silos. It can then be used for several purposes, including use as a fertiliser filler. Any hazardous ash will be sent to a waste contractor for appropriate disposal.