UP to 850 jobs will be created after plans for a multi-millionpound wood-fired biomass power station were given the go-ahead.

The £200m plant, on the site of a former power station at the Billingham Reach Industrial Estate, near Stockton, will produce enough electricity to supply more than 80,000 homes.

Renewable energy company Gaia Power, based in Yarm, near Stockton, said the development would create 746 construction jobs, and once in operation, 92 long-term jobs.

At Stockton Borough Council’s planning committee meeting yesterday, members voted unanimously in favour of the plans.

It is proposed that about 275,000 tonnes of recycled wood would be burnt at the plant, saving about 436,000 tonnes of carbon dioxide annually, compared to a coalfired power station of a similar size.

The wood would include construction and demolition waste, furniture off-cuts, such as chipboard and MDF, and used pallets, all of which often go into landfill. The plant will operate 24 hours a day.

The site will consist of a fuel store, boiler, turbine hall, 75m high stack, car parking and offices.

Aker Solutions, in Stockton, has been awarded the contract to build the plant.

Construction is expected to take up to three years.

In a report to councillors, it said: “The proposed facility will provide an output of approximately 45MW of electrical power for export to (electricity supplier) NEDL by means of a biomass boiler, which will burn the biomass fuel continuously.

“The fuel for the proposed plant will consist of recycled wood from various sources, but will exclude treated timber.

The fuel will be collected, sorted, shredded off site by a third party and delivered on a scheduled basis.”

Councillor Bob Gibson said: “This is an excellent proposal and something we should support.”