Renewable energy developer RES has announced it is ceasing work on its biomass power station project at the Port of Blyth in Northumberland.

RES' decision follows the withdrawal of a key project partner in late 2013 due to ongoing uncertainty in UK energy policy. The Government's inconsistent support for dedicated biomass energy over the last two years - as well as increased uncertainty over the UK's energy policy under the Government's Electricity Market Reform process - has critically undermined the investment case for the North Blyth Biomass Power Station.

The decision to end the biomass power station project means the loss of hundreds of millions of pounds of investment into the Blyth estuary and wider Northumberland economy. The 300 construction job opportunities and 50 full time, long-term operational jobs at the plant and annual Community Benefit Fund will also be lost.

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The project would have brought a long-term partnership with the Port of Blyth in terms of fuel transport, handling and occupancy, helping to secure further growth of this important employer and economic engine of the region. It would also have provided a magnet for economic growth in Northumberland and the North East region.

RES' Chief Operating Officer for the UK Gordon MacDougall stated: "Despite the support the project enjoys locally due to the significant benefits it would bring to the local and regional economy, the North Blyth Biomass Power Station currently faces insurmountable investment barriers due to uncertain Government energy policy.

"It's bitterly disappointing for RES that we are unable to bring this exciting project forward, and deliver the significant boost it would have represented for the Blyth and Northumberland economy. However, the gradual erosion of support for dedicated biomass leaves us with no other option."

(CD/JP)