EU Nod for UK Teesside Biomass Plant

Britain secured European Union approval on Thursday to build a biomass plant in north-east England after state aid regulators said the scheme would boost the bloc's energy and environmental goals.

The Teesside plant, one of three given British approval to operate in April last year, aims to generate 299 MW of electricity starting in July 2018, saving about 32 million tons of carbon emissions over its 30-year lifetime.

British authorities want to offer the operator a variable premium above the market price for electricity to offset the higher costs of biomass energy.

The European Commission said the aid would not distort competition.

"The Commission found that the project contributes to reaching the EU 2020 targets for renewable energy, while safeguards are in place to limit the potential distortions of competition brought about by the state aid," the EU authority said.

Reporting by Foo Yun Chee