THE preferred bidders have been announced for a £150m green power plant in Hull that will create hundreds of jobs.
Energy Works in Cleveland Street will heat and power 43,000 homes using natural gas substitutes, turbines and solar panels.
There will be 200 building jobs when construction starts and the plant will have a workforce of 40 when up and running.
The preferred bidders are Hull engineers Spencer Group and MWH Treatment, part of US-based MWH Global.
Energy Works project director Phil Morland said: "We are pleased to announce the joint venture of Spencer Group and MWH Treatment as our preferred bidder.
"The two companies are a good fit, with complementary capabilities, and offer the ideal partnership to deliver this ground-breaking project.
"Spencer has vast experience in executing complex multi-disciplinary energy projects and a track record of delivering large civil, electrical and bulk handling works, while MWH brings a wealth of experience in energy recovery projects."
The pair are set to design and build the first phase of the project once financial arrangements are confirmed, with construction due to begin early in 2015 and end by March 2017.
They were selected after a competitive process under European Union rules.
Energy Works is one of the key projects in the City Plan to create 7,500 jobs during the next decade.
The project was highlighted by the High Steward of Hull, Lord Mandelson, when he launched the City Plan in June 2013.
The first phase of the development will be an energy recovery facility to generate 28 megawatts of electricity using a natural gas substitute.
It will process materials which would otherwise be sent to landfill, while also reducing dependency upon imported fossil fuels.
Phase two of the scheme will see the later addition of an anaerobic digestion plant and materials processing facilities.
The power plant is in advanced talks with feedstock suppliers for raw material to generate methane.
Energy Works is also exploring the opportunity to establish a neighbouring data centre worth £20m.
It would take advantage of the plant's cheap power and super-fast Lightstream broadband from communications giant KC.
This further potential investment would be in the region of £20m.
Spencer Group chief executive Frank Millar said: "We are delighted to have been selected, in partnership with MWH Treatment, as preferred bidder for such an exciting and pioneering development.
"As a company founded and based in Hull, our involvement will ensure local employment will be a major priority.
"This project will create and underpin jobs within our business and open up much-needed employment opportunities within the local community."
MWH Treatment is a division of MWH Constructors based in Heywood, Lancashire.
It is part of worldwide environmental engineering group MWH Global, which has 180 offices in 35 countries and headquarters in Colorado, America.
MWH Constructors president and MWH Global director Blair Lavoie said: "We have worked with Spencer Group for some time on this project and we are delighted our joint venture has been named as preferred bidder.
"MWH has a strong reputation for developing long-term relationships with strategic partners and our partnership with Spencer to deliver this truly innovative development is a good example of this approach."
