Abengoa and Toshiba will be responsible for carrying out the engineering, design and construction of the plant. The value of the contract is expected to exceed €600 million (US$658.4 million).
To be fueled by wood pellets and chips, the biomass project will have a generating capacity of 299 MW and will save roughly 1.2 million tonnes of CO2 per year by displacing a mix of coal and natural gas from UK generation.
The project, which has received a government-supported Contract for Difference (CfD), will be the largest dedicated biomass project in the UK and receive all of its fuel from certified sustainable forestry sources in the USA and Europe.
Owned by MGT Teesside, a subsidiary of MGT Power, the project has a total investment cost of £650 million (US$1 billion). Macquarie Capital is supporting MGT Power in financing the project.
Abengoa has now been awarded the construction of two power and steam biomass plants in less than a year, the other being a 215 MW plant in Ghent, Belgium.