London-based Greenergy will refurbish existing tankage at Vopak’s Seal Sands terminal to create an 80 million litre advanced petrol, diesel and biofuel blending terminal, in a scheme worth more than £10m.
Around 75 full-time construction jobs or equivalent will be created, alongside an undisclosed number of permanent positions.
The facility will deliver diesel supplies by this summer and full petrol and diesel blending and loading facilities from April 2010.
The pioneering company was the first to supply biofuels to the UK’s forecourts and counts Tesco among its backers. Since 2005, Greenergy has supplied around a third of all biofuel in the UK.
The company’s Alex Lewis said a successful strategy which included expansion into new regions had led to the company’s rapid growth.
“Teesside is a large area with a large population and we want to gain more market share in the region. It’s poorly served at the moment.
“The new facility will allow us to cut costs in the region and offer better services to our customers, including supermarkets and oil, bus, rail and haulage companies.
“The rail hub can be achieved on Teesside using existing infrastructure, but track improvements and upgrades may be required.”
She confirmed Teesside was first choice for a major inland rail distribution hub, ahead of two to three other possible areas.
The move could make the region Greenergy’s hub for other UK areas.
Vopak will continue to own and operate the terminal.
Greenergy, which also recently acquired the Mayflower and Cattedown terminals in Plymouth, will use around a third of existing capacity on Teesside.
Ian Waller, of biofuels consultants Five Bar Gate, said the move was “a good step” for the industry. “This is a strategic move for Greenergy,” he added.
Stan Higgins, chief executive of the North East Process Industry Cluster (NEPIC) said: “We need more investments like Greenergy’s project – and there’s plenty of room for them.”
He revealed NEPIC is currently in talks with developers of 12 potential bioenergy projects on Teesside.