A construction joint venture (JV) between Samsung C&T and Tecnicas Reunidas is set to begin building the £650 million Tees Renewable Energy Plant (Tees REP) in North-East England.

The combined heat and power plant is being developed by MGT Power and will be built near Middlesborough. Construction is to be completed by 2020.

The scheme can go-ahead after financial close was reached with investment banking company Macquarie.

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The 299 MWe biomass plant will help supply renewable energy and is to support at least 600 jobs during its construction. Overall, it will provide enough electricity to power around 600,000 homes, as well as heat for use on the site and other nearby users.

Ben Elsworth, Chief Executive Officer of MGT Teesside, said: "The Tees REP project had to overcome many hurdles and Macquarie's involvement was critical to this successful outcome, as was the support of MGT's committed shareholding group including majority shareholder Capeview Capital.

"This has been a huge team effort from many different parties over a long period, and we are proud to be delivering a project which is not only low carbon but which will meaningfully add to the UK's energy security at an important time."

(LM/CD)