Construction of an energy-from-waste plant in the North East is to be suspended.
Project promoter Air Products said work on its TV2 plasma gasification plant would come to a halt to allow it to build in lessons learnt on sister scheme TV1.
The two 50MW projects are expected to create 1,500 construction jobs and divert 700,000t of waste each year from landfill sites.
Air Products said in a statement: “After careful consideration we have made a decision to temporarily suspend construction of our second energy-from-waste project, TV2, in Tees Valley.
“This decision does not reflect on the performance of our 700 highly professional contractor colleagues currently working on the TV2 project, who will sadly be impacted by the suspension in work.
“The duration of the suspension is yet to be determined but we remain committed to completing both facilities as soon as possible. We will work with our contactors to wind down TV2 construction activity in a controlled way.
“As with many ground breaking projects, improvements are identified as construction advances and new solutions [are] put in place. This is the case for our first renewable energy facility currently being built, TV1. The learnings we are making here will be applicable to our second plant. By deferring construction we will be able to ensure any modifications are applied to TV2 in a cost-effective way when activity is resumed.”
The firm said work on TV1 would not be interrupted.
Trade union GMB said it was in talks with Air Products over what it described as an “appalling” situation.
GMB regional officer for construction Michael Blench said: “This is yet another crushing blow for the workers on Teesside.”
Sahaviriya Steel Industries UK (SSI) announced in september that the steel and iron works at Redcar were to be mothballed because of problems with the supply of raw materials and services.