THE North-East is poised to pioneer a multi-billion-pound industry to burn coal for power without adding to global warming, the Government has revealed.

Teesside is a front-runner to build a cluster of up to four power stations where the carbon dioxide emitted would be trapped and buried under the North Sea, MPs were told.

The development would mean Teesside leading the world in carbon capture and storage (CCS) – a technology seen as essential to Britain’s plans to slash carbon emissions by 80 per cent by 2050.

Each plant could cost £1bn in an industry expected to employ 50,000 people, potentially throwing a lifeline at a time of rising unemployment.

The Northern Echo understands that talks are already under way to build a CCS plant close to the Corusowned steelworks at Redcar.

Last night, MPs urged Teesside to grab the opportunity offered by its industry base and location close to abandoned oil and gas fields under the North Sea, where the carbon could be stored.

Ashok Kumar, the Middlesbrough South and East Cleveland MP, said: “We have the land for these power plants, we have the skill and technological base, and we have proposals on paper that can be brought forward quickly.”

Hartlepool MP Iain Wright said: “Teesside can become the Aberdeen of the 21st Century.

“Just as Aberdeen grew wealthy on oil, we can grow wealthy on 21st Century energy – clean coal, nuclear and off-shore wind.”

Vera Baird, the Redcar MP, said: “If we can lead the way in CCS, it could be as significant for the region as opening the Stockton to Darlington Railway – and we could do with the jobs too.”

Renew, an organisation set up to promote the region’s credentials in low carbon technologies, said the power station and its transmission system could involve £1.5bn being invested in the region and create hundreds, if not thousands, of jobs.

Peter Walsh, energy manager at Renew, said he believed Teesside’s proximity to the North Sea and existing expertise and skills base would stand it in good stead for being given the power stations.

And he said the carbon dioxide transport infrastructure that would be created through the project would be a crucial addition to Teesside.

He said it could be used by scores of companies within its thriving process industries cluster, as well as by companies as far afield as Alcon, in Lynemouth, Northumberland.

Mr Walsh said: “We have the skills, the determination and the desire to carry this out on Teesside.

“It is important that we build on what we already have here in the North-East and the UK to develop new expertise which can become the basis of our economy.”

Setting out his plans in the Commons, Energy Secretary Ed Miliband picked out Teesside, the Thames Gateway, the Firth of Forth and The Humber as ideal locations for the plants.

He said: “We are investing in British skills so our industries can lead carbon capture and storage, not just within Britain, but at power stations around the world.

“This is a massive regional opportunity for Britain. For our North Sea oil and gas industry, CCS can herald a new low-carbon future.”

Power companies, working with regional development agencies, were encouraged to come forward with proposals for a decision on locations next year.

Because the cost is so enormous, the demonstration plants are likely to be built in a cluster, or clusters, to share the bill for piping the liquefied carbon dioxide out to sea.

To keep the CO2 in its liquid state, it must be buried at least 800m underground, where it will remain locked away for thousands of years.

However, the policy is a gamble because the technology is unproven.

There are no commercialscale CCS plants in the world – only a pilot plant in Germany.

As a result, the new coal plants will be required to demonstrate CCS by trapping only about 25 per cent of emissions when they open, in about 2015.

Once the technology is “commercially proven”, the plants would be forced to capture 100 per cent of output – but Mr Miliband said this might not be in place until 2025.

Caroline Lucas, the Green Party’s leader, said: “CCS is the wrong technology for the UK. The projects wouldn’t start delivering either emissions reductions, or jobs, for the next decade.

“Existing renewables technologies and energy-conservation programmes could do both, and that’s where the Government should be putting its effort.”