Work to start on Tees Renewable Energy Plant

Work to start on Tees Renewable Energy Plant

Site preparation works will begin within weeks, as MGT Teesside Limited concluded its financing arrangements for the Tees Renewable Energy Plant, a combined heat and power project bringing hundreds of jobs to Middlesbrough’s Teesport Estate.

Main construction works will be underway within a few months, with commercial operations due to start in 2020.

The project will cost around £650m to construct and will be built 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.

First announced in July 2015, project developer MGT Power partnered with Macquarie Capital and Macquarie Commodities and Financial Markets – known in combination as Macquarie - 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.

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. 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.

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”.

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, said: “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

Power to help bring this project to fruition and look forward to continuing our work to help them grow and create more employment opportunities for local people."