Plans have been unveiled for a £250m waste to energy plant at Redcar Bulk Terminal (RBT) to help power the economic regeneration of South Tees.
Yorkshire-based waste management company PMAC Energy has secured 25 acres of the terminal’s land for the development which could create up to 400 local jobs at the heart of the South Tees Development Corporation site.
Subject to permitting and planning approvals, the plant could be producing waste derived fuels in 2021 and generating enough electricity to power 56,000 homes.
This announcement comes two weeks after RBT signed a major land and handling agreement with Sirius Minerals Plc that will see up to 10 million tonnes of Polyhalite – a type of potash and multi-nutrient fertiliser pass through the facility each year.
Garry O’Malley, RBT’s general manager, said: “This announcement is hugely significant, not only for our businesses but for the whole South Tees region.
“We’ve worked closely with PMAC Energy on this project for a number of years and it’s another reflection of the continued resurgence of Redcar Bulk Terminal and this site.
“Like many others on Teesside, we were dealt a hammer blow when SSI closed – so much so you could say RBT’s mere survival is a success in itself. We’re grateful for the strong support we received during these difficult times, in particular from Greybull who provided us the capital and energy required to turn the corner.
“The fact we’re seeing significant growth, diversifying our business and attracting new companies to the Tees is an incredible achievement.
“Projects like this – which could bring hundreds of millions of pounds and many valuable jobs to Teesside – are heralding the start of a new era for RBT and our employees.
“We’ve a healthy business pipeline and the continued investment in our operations from British Steel and Greybull means we can continue to grow with confidence and pace.
“These are exciting times and we look forward to working with PMAC Energy to deliver renewable energy to power the future economic success of this site and this region.”
RBT’s road, rail and port facilities offer access to both the UK and European waste markets.
Up to 500,000 tonnes of refuse derived fuels would pass through the plant each year with 150,000 tonnes of this exported to cement and energy plants across the world.
The plant would create up to 400 local jobs in the next three and a half years. These opportunities could start in 12 months’ time with the construction of the plant and would continue – following a two-and-a-half-year build – with the availability of up to 100 full time operational jobs.
Unlike many other energy projects across the UK, the PMAC Energy plant would be completely free from Government subsidies and financial support with all income generated purely from waste gate fees and the sale of electricity. Following commissioning the plant would operate as a 100% commercial entity.
Rob Lewis, PMAC Energy managing director, said: “This is an incredible opportunity to deliver a major economic boost to the South Tees area and capitalise on the great strengths and capabilities of Redcar Bulk Terminal.
“RBT’s superb port facilities and road and rail links make this the perfect location for this plant. Not only does it give us the logistical advantages of being on the River Tees, the area also provides us with the workforce we’d need to manage the volume of waste coming into the plant and the quantity of fuel being created.”
Working in partnership with RBT – on a 25-year lease – the PMAC Energy facility would recover and treat municipal and commercial waste to create fuel for the renewable energy sector, capable of providing both heat and power. Generated fuels would not only power the on-site waste to energy plant but also be available and sold into the export market.
Redcar MP Anna Turley added: “This is another big investment project in our area which builds on our existing strengths in energy generation and waste management, and crucially creates new skilled jobs for people in our area.
“I was pleased to visit RBT recently to see how the business is growing year on year and this latest project is another boost for their growth ambitions.
“I look forward to working with RBT and PMAC as this project develops, especially to ensure local people can benefit from as many of the new jobs as possible.”