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Local opportunities pledged as international team wins £650M North East power scheme

A joint venture of Spanish firm Abengoa and Japanese giant Toshiba has won the deal to build a £650M biomass-fuelled heat and power plant in the North East - and pledged opportunities for local firms.

Developer MGT Teesside named the consortium as preferred bidder for the 299MWe Middlesbrough project.

The combined heat and power station will be fuelled by wood pellets and chips from certified sustainable forestry sources in the US and Europe.

The Circulating Fluidized Bed boiler plant for the project will be supplied by UK company Amec Foster Wheeler.

More than 800 jobs could be created at the peak of construction, and the plant is expected to sustain over 100 full time jobs once operational.

Subject to financing, site preparation works are expected to begin in the first quarter of 2016 with power produced by the end of this decade.

MGT Power chief executive Ben Elsworth said: “After an exhaustive selection process, we are very pleased to be taking this step with Abengoa-Toshiba today, and we have every confidence that they will deliver a construction project that will be successful both for us as owners and for the local region.

“We have committed to maximising opportunities for local people and companies to work on the project, and intend to follow through on that”.

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