Energy minister Malcolm Wicks has given the go ahead to Thor Cogeneration to build a 1,020 megawatt gas-fired combined heat and power (CHP) station in Seal Sands, Teesside.
Following the government's decision on August 28, Thor Cogeneration will begin building the plant on a 40 acres site at North Tees. It is expected to be operational in the first half of 2012.

The project will create up to 1,000 jobs during construction and a further 60 for operations. The CHP plant will produce both electricity and heat for local industry to use.

The company said the results of an environmental impact assessment has confirmed that the project will create one of the greenest power stations in the UK.

The CHP plant will require 20% less gas per MW hour of electricity generated, than many of the UK's existing gas-fired stations and will produce up to 60% less carbon emissions than current coal-fired plants.

Malcom Wicks said 'To secure our energy supplies and power our homes, it is important industry brings forward new energy infrastructure to maintain a diverse energy mix. It's also important that as we face the challenges of climate change we move towards more efficient energy production and this power station is an example of that.'

A combined cycle operation made up of two gas-fired generators is planned. The surplus heat from these units will be used to produce steam to drive a further generator, with additional steam also being exported to local industry.

'It fits well with the government's recent energy review which concluded that while the drive to develop alternative and renewable energy sources continues, a new generation of cleaner, super-efficient gas fired power stations is likely to remain necessary in the short to medium term,' said Paul Verrill, the firm's project manager.

He added 'This new plant will provide greener, reliable energy at a time when many existing power generation assets around the UK, particularly the ageing coal and nuclear fleet, are reaching the end of their operating life.'

Thor Cogeneration was established by the Stockton-on-Tees based PX Group.

Thor Cogeneration director, Martin Green, said 'We very much welcome the decision which is a critical consent required for the construction of the heat and power plant and has involved a great deal of work and consultation with local stakeholders in the project and with BERR'.

Stockton Borough Council approved the scheme back in April 2007 and the license to generate was also approved last year.

Green added 'We will now be finalising the financial and contractual arrangements for the project and we would expect land preparation to commence very soon with the full construction commencing in 2009 and power being supplied into the grid in the early part of 2012'.