MGT Teesside Limited today announces the conclusion of financing arrangements for the Tees
Renewable Energy Plant (Tees REP or “the project”), a 299 MWe biomass fuelled combined heat and power project located on land within the Teesport Estate near Middlesbrough in North East England.
Project developer MGT Power announced in July 2015 that it was partnering with Macquarie Capital and Macquarie Commodities and Financial Markets (together “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.
The project will cost approximately £650m to construct and will be built under a turn-key “engineering, procurement and construction” contract 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 and SCT owns Darlington-based Whessoe Engineering who will continue to support the project from a local perspective.
Site preparation works will begin within weeks, with main construction works starting a few months later. Commercial operations are due to start in 2020.
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.
“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” – Ben Elsworth, CEO, MGT Teesside