The agreement follows National Grid Electricity Transmission’s acquisition of the 73-acre Dorman Point site, where it plans to develop a major new electricity substation.
The proposed Teesside Node A substation will initially provide an additional 1.44GW of electricity capacity to support major developments across the former steelworks site, including data centres, artificial intelligence (AI) facilities, advanced manufacturing and other energy-intensive industries.
The project is estimated to be worth more than £200m and forms part of National Grid’s Great Grid Upgrade programme. The first 1,440 MVA of capacity is expected to become operational by the end of 2029.
Teesworks will undertake six months of land remediation and preparation work before transferring the site to National Grid.
The new substation will be located directly beneath existing 275kV and 400kV overhead transmission lines, creating a connection point for the planned expansion of the area’s electricity network.
The additional power capacity has been contracted to Steel River Power, which owns and operates the private electricity distribution network serving Teesworks.
Steel River Power is a joint venture between Steel River Energy and North West Electricity Networks, part of the ScottishPower/Iberdrola group.
Chris Musgrave, chairman of Teesworks, said: “Agreeing this deal with National Grid is a significant milestone for Teesworks and reflects the scale of the opportunity here at the Teesworks site. Making this land available for what is expected to be the UK’s largest substation is an important step in putting the infrastructure in place to support the next phase of industrial development across the site.
“Our focus now is on delivering the remediation works and preparing the land for handover, helping to ensure Teesworks is ready to support the energy needs of major businesses and industries for years to come.”
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