One of the world's biggest biomass plants is set to be built at Teesport
Two renewable energy projects in the north-east of England have been given a major boost.
Energy minister David Kidney said consent had been granted for a £500m biomass power station at Teesport.
About 400 jobs are expected to be created during the plant's construction and commissioning and there will be about 150 jobs once it is running.
Mr Kidney also announced £10m for the New and Renewable Energy Centre (NaREC) in Blyth, Northumberland.
The Teesport plant will be owned by MGT Power Limited and fuelled by 2.4 million tonnes of wood chips a year. It will provide up to 295 megawatts of energy.
The company said the plant would generate enough electricity for about 600,000 homes across the North East.
It will be built on a site next to Tees Dock at South Bank and is due to begin operating by late 2012.
Mr Kidney said: "Investment in the MGT Power biomass plant will create new engineering and construction jobs as well as help us achieve our national renewable energy targets.
"In just over 10 years' time, 40% of the country's electricity will come from low carbon sources, like biomass.
"There are over 37,000 green jobs in the North East already, and converting to a low carbon future is a massive growth and job opportunity."
The announcement was part of the government's Low Carbon transition plan.
The £10m for NaREC, in Blyth, will be used to test marine drive systems and other wave and tidal energy equipment.