A RENEWABLE energy firm has today announced it is to invest £200m in a major biomass power station in the region.

Gaia Power Limited based in Yarm, will create 50 permanent jobs during operation, along with 50 supply-chain positions.

The plant will also create about 400 jobs during construction if plans for the wood-fired plant on the site of a former power station at the Billingham Reach Industrial Estate are approved by Stockton Borough Council.

The fuel for the station would comprise 275,000 tonnes of recycled wood a year in chipped form.

The plant will be designed to provide power to the electricity system at a rate of 45MW and will produce enough in a year to supply more than 80,000 homes.

Michael Fox, Gaia Power founder and chairman, said: “It is a very exciting development and one which will help to cement the Tees Valley’s growing reputation for green energy development.”

The wood for the Gaia plant would be collected, sorted and shredded off site by a specialist renewable wood recycler under a long term agreement.

Delivered by road in chipped form, it would include construction and demolition waste, furniture off cuts, used pallets, cable drums and other sources.

Gaia Power is also investigating the feasibility of the plant supplying low grade heating to nearby industrial units.

Richard Poundford, head of regeneration and economic development, said: “Stockton Borough Council would welcome employment and renewable energy opportunities, subject to Planning, that a scheme of this nature could offer.”

Neil Kenley, strategic investment and marketing director for Tees Valley Regeneration, added: “We along with Stockton Borough Council have been working with Gaia Power for some time now and are delighted they have decided to bring the green energy plant and the massive investment and vital jobs that go with it to the Tees Valley.

"This is exactly the type of business we work so hard to attract to the area and the fact that Gaia Power will be established here adds more credence to the fact that the Tees Valley is becoming a hub for new energy companies.

"The energy supplied by Gaia Power will boost the region to the top of the table for using green energy and we will be seen to be leading the way for other parts of the UK to follow.”