A £500m biomass power station on Teesside has been approved by the Government.

The Redcar plant, operated by MGT power, will supply around 600,000 homes in the North-East with electricity.

The plant will create 600 jobs during the three year construction period, 150 permanent jobs during the station's lifetime, and once operating will contribute about £30m per annum into the North-East's economy.

Redcar MP Vera Baird said: "I am very pleased for MGT Power with whom I have been working closely to get this important development approved by government.

"I am delighted that the Department of Energy & Climate Change has now granted consent and greatly appreciate David Kidney's visit to Redcar in order to make the announcement of this environmentally-friendly plant.

"This new venture makes very clear that there is a strong future for industry on Teesside. That MGT are surging ahead with the project, notwithstanding the recession, demonstrates this without doubt. We look forward to the 150 high skills jobs coming our way."