ADVERTORIAL FEATURE
Private wire network The Teesworks site has one of the largest private wire electricity networks in the UK , independent of the National Grid . The network dates back to the 1960s and needs expanding and upgrading in order to cater for the electricity requirements of large institutional tenants .
To ensure optimisation of network design expertise as well as compliance with industry regulations , Teesworks Limited is working with leading UK electricity networks providers and has secured significant infrastructure upgrades to cope with future demand .
Financial Once Teesworks Limited has negotiated and secured contractual agreements with tenants , financial structures have been put in place for reinvestment into the site to support the further significant cost required to remediate land for occupation and deliver the required infrastructure works to support tenant requirements .
For example , in the case of the SeAH UK monopile factory , the Teesworks Limited private sector partners carried out all contract negotiations with the company ’ s South Korean parent company over a nine-month period , which involved complex and detailed commercial discussions , ensuring investment was secured and commitments made for development onsite .
The key industrial sectors developing on the Teesworks site are offshore wind , net zero technologies , hydrogen production and storage , sustainable fuels and energy recovery and battery storage .
Under the contract , SeAH UK will pay an annual rent over a 40-year period and construct the colossal £ 650m manufacturing facility . To generate the additional capital to reinvest into the Teesworks site now , rather than receive the annual rent income over 40 years , Teesworks Limited opted to sell the benefit of the income from this lease to an investment fund in return for a fixed sum upfront . The net result of this is that millions of pounds was secured to support investment in the Teesworks site while the Tees Valley Combined Authority also receives £ 650,000 a year for the next 40 years .
This model supports the longterm business plan and provides a sustainable , robust strategy , enabling Teesworks Limited to quickly prepare the next phases of land for development and cover all ongoing operating costs and liabilities .
Current ongoing works
Development continues at pace across the Teesworks site .
Current ongoing works include :
Construction of the £ 650m SeAH Wind monopile factory . This giant 800m-long , 40m-high factory will create 750 direct jobs and 1,500 indirect jobs once completed .
Creating a 1,500-space parkand-ride facility to help visitors and workers navigate the giant Teesworks site .
Preparing the ground for a worldfirst net zero carbon capture and storage facility , creating more than 4,000 jobs .
Land remediation for major offshore wind contractors and several other green energy companies .
New substations and infrastructure upgrades .
Major estate link roads and freeport entrances .
To Date
The voice of business in the Tees region | 29