Plans to build a £200million biomass power plant at Tees Valley have been approved.
Gaia Powers plant will be powered on recycled wood chippings, generating 50MW, which is enough to supply over 80,000 homes.
Around 275,000 tonnes of pallets, MDF and chipboard will be diverted from landfill to fuel the facility each year.
Gaia power founder and chairman Michael Fox said: We have worked long and hard with the regions stakeholders, local industry and residents to ensure that our projects ticked all the right boxes and addressed any concerns raised.
Planning permission is clearly a very important step in the projects development; we will now focus on bringing together the financing package.
Stockton Borough Council Planning Committee approved the planning application on 16 October and engineering, technology and construction solutions provider Aker Solutions is to build it.
Tees Valley Regeneration leads a £2 billion investment programme for the area. Its strategic investment and marketing director Neil Kenley said: This is fantastic news and shows that in the Tees Valley we have the ambition, skills and drive to lead the way in green energy generation.
The plant will be built at ship recycler and demolition specialist Able UKs Billingham Reach industrial site and is expected to be operational during 2012.