Japanese firm Toshiba and a Spanish energy company have been awarded contracts to build what is claimed will be the largest biomass facility in the UK.
The technology giant and Abengoa will build the €600 million (£426m) combined heat and power (CHP) plant located in the Port of Teesside, Middlesbrough.
The project is expected to have a capacity of 299MW and generate enough electricity to power 60,000 households.
Abengoa also estimates 1,100 jobs will be created during construction.
It stated: “This base-load generation reliable thermal plant will help to ensure the supply of electricity to UK consumers while reducing greenhouse gas emissions.”
Earlier this year the European Commission approved state aid for MGT Teesside’s biomass project.
It was one of the eight projects awarded early contracts under the UK Government’s Contracts for Difference (CfDs) scheme, which guarantees a set price for the electricity produced.