Canadian Biomass Magazine

Abengoa and Toshiba to build biomass plant in U.K.

August 11, 2015
By Bloomberg/Anna Hirtenstein

August 11, 2015 - Abengoa SA and Toshiba Corp. have been chosen to build MGT Teesside’s biomass power station in northern England.

The 299-megawatt Tees renewable-energy plant will generate electricity and heat by burning wood pellets and chips. The Seville, Spain-based sustainable-technology developer will be responsible for the engineering, design and construction phases for a contract valued at at least 600 million euros ($656 million), Abengoa said Monday in a statement.

Financing for the project is being arranged by the Australian investment bank Macquarie Group Ltd., providing equity and raising debt for the 650 million-pound ($1 billion) plant, which is expected to be completed in 2015. When done, the plant will supply renewable energy for the equivalent of at least 600,000 households, Abengoa said.

MGT Power Ltd., parent company of MGT Teesside, won European Union approval for U.K. aid in January. The British government will pay the plant a variable premium above the market price for electricity because it will provide power at a steady rate unlike other renewable sources such as wind farms.

The biomass plant will be located at Teesside port in Middlesbrough. The wood chips will be imported from “certified sustainable forestry resources” in the U.S. and Europe, according to the e-mailed statement.


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