Biomass powers up
A DEAL to take forward the development of a £200m power station on Teesside has been hailed as a major boost for the area.
Gaia Power has appointed Stockton-based Aker Solutions, a global provider of engineering, technology and construction solutions, as the organisation which will work with it to develop the proposed 50 MWe biomass power station at Billingham.
The announcement is seen as a triple boost for the region and as heralding another step towards Gaia Power realising its ambitious plan. Following project implementation, construction jobs will go to local workers and the huge investment will stay in the area.
Yarm-based Gaia Power announced plans for the plant earlier this year. On completion the plant will bring 50 high-quality permanent jobs, the opportunity for apprenticeships and work for local graduates, as well as 50 supply-chain positions.
It will also sustain around 400 jobs during construction.
Michael Fox, Gaia Power founder and chairman, said: “It is fantastic to be able to announce that once the project details are finalised the plant will be built by a company with Aker Solutions’ stature and experience.”
Alex Dickinson, Gaia Power director, added: “We considered many, large European companies but none could offer the experience and track record for delivering this type of project compared to Aker Solutions. The fact they too are a locally based company speaks volumes about the capabilities of the Tees Valley.
“Provided we are granted planning permission, we would hope they will be on site early in 2010. It is expected construction will take about 30 to 36 months.”
David Ley, president and managing director of Aker Solutions’ engineering and construction business in Stockton, said: “Our global organisation is committed to the development of technology and services to meet the fundamental challenges related to the energy gap and climate change. With our experience and involvement in new energy and environmental segments such as biofuels, wind power and carbon capture and storage, the Gaia project is a further demonstration of our commitment to being part of the solution to these challenges.
“The fact that this is a totally local initiative makes it all the more satisfying.”
Neil Kenley, strategic investment and marketing director at Tees Valley Regeneration, said: “The announcement Gaia Power has struck a deal with Aker Solutions is fantastic news and a great boost for the Tees Valley.
“It’s a real vote of confidence for the Tees Valley’s business and industry community and we hope its success will act as a catalyst for further investment and job creation.”
The power station will burn recycled wood chippings to generate power and will be the first biomass plant in Stockton. The plant will be built on a 16 acre site at Billingham Reach Industrial Park. It will generate enough power to supply more than 80,000 homes a year. It is expected to be in operation by summer 2012.
Richard Poundford, of Stockton Council, added: “The project is still subject to planning permission, however this is a perfect case study of how major developments can have a wider benefit to the community both in terms of the project itself, as well as the opportunities to create direct employment, and indirect employment through the supply chain.”
The North-east is championing the development of new energy as part of the Great North Revolution, launched recently by the Gazette and the CBI to map out a strategy for growing the regional economy - www.nebusiness.co.uk/revolution