Member Article

£650m energy plant project to create at least 600 new Teesside jobs

MGT Teesside Limited has announced that work will begin on a new energy plant near Middlesbrough within weeks, creating at least 600 new jobs in the region.

Concluding financing arrangements for the Tees Renewable Energy Plant (Tees REP) the firm says the project will cost approximately £650m in total.

Project developer MGT Power announced in July 2015 that it was partnering with Macquarie Capital to deliver the 299 MWe biomass fuelled combined heat and power project.

Macquarie, together with Danish pension fund PKA, will now become the joint owners of MGT Teesside, which will own and manage the Tees REP.

Site preparation works will begin within weeks, with main construction works starting a few months later. Commercial operations are due to start in 2020.

At least 600 jobs will be created during construction and about 100 full time jobs sustained on site once operational plus several hundred more in the supply chain – many in the local region.

Ben Elsworth, CEO of MGT Teesside, said: “The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment.

“Support from the local region and a big team effort from Macquarie and all of the different parties involved in the project were instrumental in getting there. We can’t wait to get work started on site and make this project a huge success for the Teesside region”.

Mark Dooley, Head of Infrastructure, Utilities and Renewables, Macquarie Capital Europe commented: “We are delighted that our partnership with MGT Power will enable the delivery of this important project for the economy of North-East England.

“Macquarie is committed to supporting UK’s move to green energy and we see Tees REP as a key component of this transition.”

David Robinson, CEO of PD Ports, said: “This is excellent news for Teesside and gives substantial impetus to the long-term economic activity in the area as well as positioning the region as a major energy hub, creating hundreds of jobs and many more in the wider supply chain.

“Attracting such a significant UK energy infrastructure project to Teesport further complements recent investments made by PD Ports including the decision to redevelop our Number One Quay last year”.

Cllr Dale Quigley, cabinet member for economic growth at Redcar & Cleveland Borough Council, added: “This is a massive investment into Redcar and Cleveland, and we really welcome this news which will bring high quality jobs to people in our borough. We are proud to have supported MGT.”