Stockton Council has granted planning permission for a 49MW power station at Port Clarence in the north east that will be fuelled by waste wood.
Port Clarence Biomass and Prism Planning have gained the permission for a facility that will cost around £160 million.
Prism Planning managing director Steve Barker said: “This is great news for Stockton and Teesside and we are pleased to have been able to help with this important project. At a time when the security of gas supplies from Russia is very much in the media spotlight after recent events it is great to see that Stockton is helping to deliver practical alternatives.
“The work required to get this permission in place has been done in record time and it’s a tribute to all the team who have worked so well with Stockton Council’s members and officers to iron out all the issues and get the permission in place.
“From day one of the project we have also worked alongside the financiers of the project and we believe this scheme will come forward rapidly on the site.”