The Government has ended months of uncertainty for MGT Power, the company behind the proposed biomass power station in Teesport, Middlesbrough, by ruling on the Renewables Obligation Certificate (ROC). MGT’s project is among the largest of a cluster of green schemes awaiting the all clear to begin on Teesside. The ruling that finally came this week guarantees the plan’ts revenue level for the next 20 years.
The plant will generate around £30 million for the local economy, employing approximately hundreds of people in construction, 150 in the plant itself and an estimated 500 more in the supply chain.
MGT Director, Chris Moore said, “This really is the final regulatory hurdle out of the way – we are very pleased… The doubts in the minds of UK lenders and equity providers have been removed as far as big biomass projects go… MGT must be one of the few biomass companies with all of its ducks in a row – watch this space.” Moore also added the fact that the company would be able to meet the Government’s deadline, as the company is ready to build right away.
Renewable energy bosses on Teesside welcomed the decision on ROC as it incentivizes firms towards green electricity, boosting the green sector by willing them to buy a certain amount of their electricity from renewable sources.
Similar decisions in different renewable sectors have been heralded “major step[s] forward” and Alex Dawson, of TAG Energy Solutions in Teesside and chairman of Energi Coast agrees. Dawson said, “We believe this is the first step to creating some stability in an industry, which has the potential to become a cornerstone of a successful economy.”
