A consortium of Spanish and Korean contractors will build a new £650m biomass plant in Teesside after the project secured financing.
Construction News reports, the joint venture between Spain-based Tecnicas Reunidas and Korean firm Samsung Construction & Trading will lead construction on the long-awaited Tees Renewable Energy Plant at Teesport near Middlesborough.
The 299-MWe project – one of the biggest biomass plants in the world – was proposed by developer MGT Power in 2007 but failed to secure funding up until now.
MGT Power announced in July 2015 that it was partnering with Macquarie Capital and Macquarie Commodities and Financial Markets to help raise funds.
MGT Teesside’s CEO Ben Elsworth and the land where the plant will be built.
Macquarie, together with Danish pension fund PKA, will become joint owners of the plant under the financing deal.
Construction will begin in months, with the plant expected to be operational by 2020.
Tecnicas Reunidas has constructed energy projects in Spain and across the world.
In 2012 it was named as one of the EPC contractors for the delayed Trafford Power plant in Carrington.
Samsung C&T has been involved in a number of infrastructure projects around the world, including the Burj Khalifa and the Mersey Gateway Bridge.
Mace will support the construction of the project, alongside consultants Poyry Energy and RPS.
At least 600 jobs will be created during construction, as well as“several hundred more” in the supply chain.
MGT Teesside chief executive Ben Elsworth 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.”
Macquarie Capital Europe and head of infrastructure, utilities and renewables Mark Dooley said: “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.”
BY JACK SIMPSON
