Once completed in 2018, the 299 MW Tees Renewable Energy Plant in Middlesbrough, UK, will generate electricity for the equivalent of 600,000 homes, 24 hours a day, the company said.
Abengoa will be responsible for carrying out the engineering, design and construction of the plant for the client MGT Teesside.
The project will use wood pellets and chips from certified sustainable forestry resources from the United States and Europe as fuel, and will be audited to ensure compliance with the strict criteria established by the UK's incentives for renewable energy.
According to MGT Teesside, the scheme will help to meet the UKs legally binding renewable energy target of 15 percent of all energy consumed by 2020, accounting for around 1 percent of the target.
It will save about 1.2 million tonnes of CO2 per year by displacing a mix of coal and natural gas from UK generation, the company said, and recycled steam produced by the facility for use by the plant and neighbouring industrial sites, the company said.
In a written statement, Abengoa said the project will help promote the country's energy transition to renewable and efficient energy sources."
Additionally it said, "this base-load generation reliable thermal plant will help to ensure the supply of electricity to UK consumers, while reducing greenhouse gas emissions."
Abengoa has now been awarded the construction of two power and steam biomass plants in less than a year, the other being a 215 MW plant in Ghent, Belgium
The Ghent project was previously the largest power and steam from biomass plant in the world to have awarded a construction contract. These two awards strengthen Abengoa's capacity to develop complex projects, as well as its commitment to sustainable development.
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