Plans for a major biomass plant at Teesport are still under way but UK energy policy delays are slowing the project, the Gazette Live has reported.
MGT Power chiefs had hoped a final investment decision on the £600m Tees Renewable Energy Plant would be in place by now.
But Department of Climate Change (DECC) hold-ups to key decisions, including the fixing of subsidies for new-build projects, are creating too much uncertainty.
A long-term government commitment is crucial to securing the finance needed for many of the UK’s biomass plants.
Trade body, the Renewable Energy Association, has claimed that many of those schemes could have been operational by now, if it hadn’t been for a string of policy changes.
Meanwhile the government’s Energy Bill – which will shape UK electricity generation and investor decisions for decades to come – has gone to the House of Lords for scrutiny.
MGT Power signed a deal for their 300 megawatt project with a trio of Korean backers last autumn.
Meanwhile, it’s unclear how a different type of subsidy mechanism, being brought in by government to replace ROCs (Renewable Obligations Certificates), will work.
MGT Power, which first announced its Tees project plans back in 2008, had hoped the project could be operational by 2012.