A £20m project to improve the efficiency of Wilton Power Station, on Teesside, which was put on hold last year following the collapse of Enron, is to go ahead, safeguarding 160 jobs.

The project to build an extra gas turbine at the plant, which serves local industries, will also create 85 construction jobs while building work is under way.

The 160 jobs linked to the power plant will be more secure once the project is completed, managers said last night.

SembCorp Utilities Teesside, which bought Enron last year, has approved funding to complete the scheme, which was suspended 18 months ago.

Engineering design, construction and commissioning work will start immediately and will take about 15 months to complete.

SembUtilities Solutions, SembCorp's project team, will manage the construction.

But the engineering design, construction and commissioning for the extra turbine will be managed by Aker Kvaerner's AK Engineering Services business, based in Stockton.

Paul Gavens, managing director of SembCorp Teesside, which employs almost 600 people, said: "It will play a major part in enhancing the long-term future of the power station, underpinning the jobs of the people who work there."

Malcolm Oliver, president of AK Engineering Services, said: "We are delighted that the project is continuing. Our local presence, combined with our international capability in the power sector, will enable us to deliver an optimised technical solution to SembCorp Utilities Teesside."

The turbine will be integrated with the power station and will improve both efficiency and flexibility at the station.

Wilton Power Station burns oil, coal and gas to create steam and electricity.

It also pumps steam that has already been used in turning turbines to companies such as Huntsman and Dupont for use in their processes, making it more environmentally-friendly because the steam is re-used.

The new gas turbine will allow the station to respond more quickly to its customer demands for large quantities of steam, and will further aid the 20 million tonnes of carbon dioxode reductions already achieved by the plant in in the past 50 years.

It also replaces an oil-fired boiler, which will help to cut emissions.