£150m renewable gas facility coming to Teesworks site creating hundreds of jobs

A pioneering £150m residual waste to renewable gas facility is set to be established on the Teesworks site, it was announced today (17 May).

Circular Fuels Ltd will take non-recyclable residual waste from households and industry and convert it into renewable dimethyl ether (rDME), a safe, cost-effective and clean burning fuel. This renewable fuel behaves in the same way as LPG and can be stored in cylinders and used by those properties not connected to the UK’s national gas grid.

During construction the plant will create more than 200 jobs, with more than 50 direct skilled roles and more in the supply chain coming when it begins its operations in 2024. When fully up and running, it will have the capacity to produce 50,000 tonnes of fuel per year.

The facility is earmarked for the Dorman Point area of Teesworks and will also be carbon capture ready so, when established, it has the potential to link into Net Zero Teesside that is being spearheaded by bp, and the wider CCUS infrastructure.

Tees Valley Mayor Ben Houchen said: “It’s fantastic to be able to welcome Circular Fuels Limited’s first commercial-scale rDME production plant on Teesworks.

“And, of course, it will drive forward the creation of hundreds more well-paid, good-quality jobs for people across Teesside, Darlington and Hartlepool and support our brilliant supply chain businesses.”

“We are thrilled to announce Teesworks as the intended site for our first industrial-scale rDME production facility,” said Søren Jacobsen, Dimeta CEO and Circular Fuels Limited director, “The strong strategic alignment between the Teesworks management team, Dimeta, and LPG industry stakeholders has been crucial to the plant development so far.

“Today there is an urgent need to bring rapid and affordable low carbon heating solutions to more than a million households and businesses in the UK that are not connected to the natural gas grid.

Jacob Young, MP for Redcar and Teesworks Board member, said: “Yet another excellent development for the Teesworks site, yet another step forward for green, low-carbon energy and yet another job announcement for local people.

“Circular Fuels is so-named for a very good reason. The company is able to recycle waste to produce a clean-burning replacement for LPG gas that can be stored in cylinders, presenting a low-carbon solution to homes not connected to the gas network.”