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A green gas-fired power station is to be built at Seal Sands.
Energy Minister Malcolm Wicks has given the go-ahead to Thor Cogeneration Ltd to build the 1,000 megawatt gas-fired combined heat and power station.
The £500m station will be built on a 25-acre coastal site near Stockton and could supply power to the National Grid by 2009.
It is estimated that more than 200 jobs could be created in the construction phase of the operation.
Malcolm Wicks said: "To secure our energy supplies, and power our homes it is important industry brings forward new energy infrastructure.
"It's also important, as we face the challenges of climate change, we move towards more efficient energy production and this power station is an example of that."
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