The world’s largest biomass CHP facility will be built in Teesside in the United Kingdom. CHP stands for “combined heat and power” and is also known as cogeneration. It is significantly more efficient than conventional electric generating plants that burn fossil fuels. The CHP process is between 75–80% efficient, versus traditional fossil fuel plants which are 50% efficient, according to the US Department of Energy.

Abengoa and Toshiba Corporation have been selected as preferred bidders to build the Tees Renewable Energy Plant. The project is owned by MGT Teesside, a subsidiary of MGT Power, a British company committed to developing utility scale biomass CHP projects. With a capacity of 299 MW of electricity and steam, the Teesside facility will be the world’s largest power and steam from biomass plant; it will supply renewable energy for 600,000 households in the UK. Up to 1,100 jobs will be created during construction,

Abengoa will be responsible for carrying out the engineering, design and construction of the plant for MGT Teesside. The completed facility 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. Total engineering and construction costs will exceed $661 million.

A biomass CHP facility provides constant power output much like a traditional fossil fuel fired electric generating plant. That will promote grid stability as more solar and wind power is provided to the grid from other sources while reducing greenhouse gas emissions. The new plant will help reduce the UK.’s carbon footprint and promote the country’s energy transition to renewable and efficient energy sources.

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 will be the second largest power and steam from biomass plant in the world.