Hundreds of jobs are set to come to Teesside with the creation of a new waste to energy plant.
The £150m facility, owned by Circular Fuels Limited, will be built on the Teesworks site and is scheduled to open in 2024.
Around 200 jobs will be created during construction, with permanent roles also expected to follow, both on the site and in the supply chain.
It has been described by Tees Valley Mayor Ben Houchen as another example of the area leading the UK's clean energy sector.
The site will take household and industry waste and convert it into a renewable, clean-burning gas, dimethyl ether (rDME).
The gas is stored in cylinders and so can be be used by properties currently not connected to the UK's national gas grid - which are often in hard to reach areas.
When fully operational, the site will have the capacity to produce 50,000 tonnes of fuel per year, helping the UK's move to decarbonise the energy sector.
The announcement comes a day after major plans were revealed to redevelop Middlesbrough town centre on 16 May.
New hotels, offices and leisure facilities are planned, as well as speeding up existing developments.
The Tees Valley Mayor and Mayor of Middlesbrough are working together to spearhead the project, and a body called Middlesbrough Development Corporation is being set up to oversee the project.
Mayor Houchen said the development of the renewable energy plant would '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'.
Søren Jacobsen, CEO at Dimeta and Circular Fuels Ltd Director, said the site on Teesside will help fulfil 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'.
He also said the gas produced at the site wold not need any changes to the existing infrastructure, and can replace more polluting fuels.
Jacob Young, MP for Redcar and Teesworks Board member, said: "As the world looks towards a Net Zero future, it's Teesside that stands as the world's first choice for ground-breaking green innovation and it's Teesworks that continues to put Teesside on the map."
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