The scheme proposed by MGT Power will be one of the largest-ever biomass plants to be built in the world.
Backers of the scheme are now securing funding and are hoping to have the plant operational by 2012.
Chris Moore, Director of MGT Power said: "The Government’s consent is welcome news as we are at an advanced stage with forestry establishment for fuel sourcing, and power plant procurement.
"We can now mandate our banks, conclude the financing and reach agreement with our preferred technology bidders. We are moving towards an early construction start with a high degree of confidence.
ADVERTISEMENT"Other similarly sized biomass plants are proposed in other parts of the country but our Teesport project is currently two years ahead of the pack and likely to be one of the first to be operational. It comes at a time when replacement UK energy generation capacity is urgently needed. We will continue to work closely with Redcar & Cleveland Council as well as PD Ports, the owners of Teesport, Renew Tees Valley and the local Trade Unions to complete the project."
The plant will create 600 jobs during the three year construction period.
The biomass feedstock for the Tees Renewable Energy Plant will be sourced from certified sustainable forestry projects developed by the MGT team and partners in North and South America and the Baltic States.
These projects will provide clean burning woodchip, which delivers 95% greenhouse gas savings in comparison to coal or natural gas through the life cycle and will not use high quality land suitable for food crops.
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