£650m Tees energy plant will create hundreds of jobs

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MGT Power

A new £650m energy plant on Teesside is set to create hundreds of jobs.

MGT Power has finalised funding for its Tees Renewable Energy Plant near Middlesbrough.

The factory, at Teesport, between Redcar and Middlesbrough, will be one the world’s largest biomass power stations, providing electricity for 600,000 homes by burning wood chips and pellets imported predominantly from the US.

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.

Biomass discharge services will be provided by PD Ports through the port of Teesport.

Work is expected to start within weeks.

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.

PD Ports Tees REP CGI

“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”.

Project developer MGT Power announced in July 2015 that it was partnering with Macquarie Capital and Macquarie Commodities and Financial Markets to deliver the 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.

The project will cost approximately £650m to construct and will be built under a turn-key “engineering, procurement and construction” contract by a consortium of Tecnicas Reunidas of Spain and Samsung Construction and Trading (SCT) of South Korea.

The contractor is working to include local capabilities in the project and SCT owns Darlington-based Whessoe Engineering who will continue to support the project from a local perspective.

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

Mark Dooley, Head of Infrastructure, Utilities and Renewables, Macquarie Capital Europe 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.”

PD Ports CEO David Robinson 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”.

Teesside-based energy and process industry specialist, the px group, has been engaged to support MGT Teesside during the construction phase alongside Poyry Energy, RPS and Mace.

px group CEO Ian Clifford said: “We are delighted to have been selected to operate this site and very much look forward to working with MGT.

“The fact that the plant is on our doorstep and increases our involvement in the renewable energy sector makes it doubly satisfying.

“This is the second major contract we have won in 2016 and supports our expansion and diversification programme, securing and creating jobs in the energy sector.”


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