UK food retailer has signed an agreement under which MGT Power will supply 100% of the power requirement for Tesco’s Teesport import warehouse from MGT’s proposed 295MW biomass power station, which will be located adjacent to the warehouse.

The Tesco warehouse opened in August. The biomass-to-power plant, which secured consent from the UK Government in July, is targeted to enter commercial operation in 2012. Construction of the plant is set to commence in the first quarter of next year.

Chris Moore, Director of MGT Power said: ‘We look forward to working with and developing a relationship with Tesco Teesport. Supplying power to other parts of the Teesport estate is a logical move for ourselves and we are seeking further agreements with other operating facilities in the port and the immediate area.’

Tesco has also unveiled plans to build its first zero-carbon store at Ramsey, Cambridgeshire, UK, later this year. The Tees Renewable Energy Plant will operate at baseload – 24 hours a day, all year round. This means it will produce the same amount of renewable electricity over a year as a 1,000 MW wind farm, says the developer.