PX Engineering, part of the PX Group, has awarded the assignment for its Technical Owner's Engineering contract with MGT Power for the biomass plant.

However, the value of the order has not been disclosed.

The £650m Tees Renewable Energy Plant (Tees REP) will utilise sustainable biomass fuels, from the UK and globally.

The plant is expected to produce nearly 2.4 TWhrs of electricity annually.

MGT Teesside CEO Ben Elsworth said: “The Tees REP project has had to overcome many hurdles in development but we have now successfully reached the next stage despite the difficult financing environment.

“Support from the local region and a big team effort from Macquarie, PX Group, Pöyry, RPS and Mace were instrumental in getting there.”

The new assignment involves assistance in design review and construction supervision for the project.

It also includes technical support during erection, commissioning, testing and hand-over, and support during the warranty period.

During the final stages up to financial close of the contract, Pöyry will offer MGT with front end engineering design and technical support for the tendering and negotiation of the engineering procurement construction (EPC) contract.

It offered MGT, a British company focused on large scale biomass projects, with front end engineering design during the early stages of the project development.

Pöyry's energy business group UK head of renewables Julian Scutter said: “The signing of financial agreements is a great success for the renewable energy industry and paves the way for the world's largest new-build biomass Combined Heat and Power (CHP) plant to be constructed in the UK.”

In June, Pöyry received a contract from Kalehan Genç Enerji Üretim to provide detailed design services for the 500MW Lower Kaleköy hydroelectric power plant and dam in Turkey.