Abengoa and Toshiba Corp. have been selected as preferred bidders to build the Tees Renewable Energy Plant.

The project is owned by MGT Teesside, a subsidiary of MGT Power, a British company committed to developing utility scale biomass combined heat and power (CHP) projects.

This will be the world’s newly built largest power and steam from biomass plant, and will be located in the Port of Teesside, Middlesbrough, UK. It will have a capacity of 299MW of electricity and steam, both for self-sufficiency and to be exported to nearby industry and users. The engineering and construction contract will exceed €600 million.

Abengoa will be responsible for carrying out the engineering, design and construction of the plant for the client MGT Teesside. This project will use wood pellets and chips from certified sustainable forestry resources from the US and Europe as fuel, and will be audited to ensure compliance with the strict criteria established by the UK’s incentives for renewable energy.

The project will supply renewable energy for the equivalent of at least 600,000 households in the UK. During the construction phase, up to 1,100 jobs are expected to be created.

Abengoa has now been awarded the construction of two power and steam biomass plants in less than a year, the other being a 215MW plant in Ghent, Belgium. The Ghent project was previously the largest power and steam from biomass plant in the world to have awarded a construction contract.