Permission Secured For New Circular Fuels Ltd Renewable Plant To Bring 300 Jobs

Teesworks | Published on: 2nd June 2023

A cutting-edge fuel-from-waste facility has taken a huge step forward at Teesworks after plans were officially approved this week.

Circular Fuels Ltd is to create a ground-breaking low carbon plant on land at Dorman Point – with 250 construction jobs and more than 50 skilled roles to come, and many more indirect jobs to come via the feedstock supply and fuels offtake supply chain.

When fully up and running, the £150million plant will be able to produce 50,000 tonnes of fuel per year from 220,000 tonnes of non-recyclable household and industry waste by converting it into a safe, cost-effective, and clean burning fuel.

A bid to secure planning permission for the plant was officially granted by Redcar and Cleveland Borough Council on Wednesday (31 May).

Chris Musgrave OBE, Chairman of Teesworks, said: “This is another clean and green investment secured on the Teesworks site which will bring hundreds of good jobs to Dorman Point. Circular Fuels are a great example of the sort of project we want to bring to the site in the industries of the future.

“We have an unparalleled knowledge base when it comes to the chemical industry in our region, and the granting of these plans means work can get underway on getting this plant up and running.

“We’re working hard readying the land at Dorman Point and this marks yet another milestone in our journey to bring thousands of good paid, local jobs to the Teesworks site.”

The renewable fuel to be created – called renewable and recycled carbon dimethyl ether (DME) – has similar properties to LPG and can be stored in cylinders and tanks. This means it can serve properties not connected to the national gas grid, which are often some of the hardest to decarbonise.

The plant will sit on a 14-acre site on the 140-acre Dorman Point area. It will also be carbon capture ready so, when established, it has the potential to link into Net Zero Teesside, spearheaded by bp, and the wider CCUS infrastructure.

Tees Valley Mayor Ben Houchen said: “Thousands of good-quality, well-paid green jobs are coming and the Circular Fuels project is one of a raft of examples which underline how Teesside is the green engine room of the nation.

“Our Joint Venture partners have put in the work and are footing the bill on readying the land for this vital investment. This permission means more work can now get going on the ground.

“Our vision to make Teesside a leader in industries of the future is well and truly becoming a reality – Teesworks will be a trailblazer in creating homegrown energy and well-paid jobs for the people of Teesside, Darlington and Hartlepool.”

Circular Fuels Ltd is backed and majority owned by Dimeta, a joint-venture between SHV Energy and UGI International – two of the world’s biggest liquified petroleum gas (LPG) companies – and sustainable energy solutions firm KEW Technology, which is providing the high efficiency and pressurised Advanced Conversion Technology used within the plant’s process.

The plant is set to be operational in 2025.

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