It will be one of the largest-ever biomass plants to be built in the world.
The plant will create 600 jobs during the three year construction period.
Chris Moore, director of MGT Power said: “The Government’s consent is welcome news as we are at an advanced stage with forestry establishment for fuel sourcing, and power plant procurement.
“Other similarly sized biomass plants are proposed in other parts of the country but our Teesport project is currently two years ahead of the pack and likely to be one of the first to be operational. It comes at a time when replacement UK energy generation capacity is urgently needed. We will continue to work closely with Redcar & Cleveland Council as well as PD Ports, the owners of Teesport, Renew Tees Valley and the local Trade Unions to complete the project.”
The plant will be built on a site next to Tees Dock at South Bank and is expected to be operational by late 2012.