South Tees Development Corporation — the scale of opportunity
The South Tees Development Corporation (STDC) controls 4,500 hectares (the former SSI Redcar steelworks) — one of the largest development opportunities in UK history. STDC has earmarked the site for: offshore wind manufacturing (GE Vernova offshore nacelles, Sea Green/Dogger Bank supply chain); hydrogen energy (Hydrogen Teesside — CCUS-linked blue hydrogen, green hydrogen via electrolysis); advanced metals manufacturing; petrochemical transition. Each of these sectors: (1) IETF-eligible (fund closed July 2025) manufacturing; (2) Within Teesside Freeport designated tax site; (3) Large industrial buildings with excellent rooftop PV potential; (4) Northern Powergrid DNO with historically good grid capacity for heavy industry.
Teesside Freeport ECA — qualifying sites
Teesside Freeport designated tax sites: South Tees Development Corporation (Redcar — 4,500 ha); Teesport (PD Ports — Middlesbrough dock estate); Billingham (INEOS Chemicals, ex-ICI, chemical park); and Wilton International industrial estate (SABIC UK, Huntsman, Sembcorp). Within these zones: 100% Enhanced Capital Allowances on plant and machinery. For a £3m manufacturing solar project at South Tees: Freeport ECA £750k tax shield (versus £375k standard). Check teessidefreeport.co.uk for site boundaries.
Offshore wind supply chain IETF (closed July 2025) + Freeport ECA stacking
Offshore wind component manufacturing at South Tees (nacelles, blades, towers, transition pieces, cable terminations) would have qualified for the IETF (closed July 2025) as advanced manufacturing. Combined with Teesside Freeport ECA: for a £5m offshore wind manufacturing solar install at South Tees: Freeport ECA £1.25m + IETF 40% £2m = £3.25m year-one combined public funding. Net effective capex: £1.75m. Annual saving (3 MW at 88% self-consumption): £660,000. After-grant, after-tax payback: 2.7 years — transformational for capital-intensive offshore wind manufacturing.
Common questions
Is the Dogger Bank Wind Farm supply chain IETF-eligible (fund closed July 2025)?
Yes. Dogger Bank Wind Farm (the world's largest offshore wind farm under construction — Equinor/SSE) Teesside supply chain manufacturers are IETF-eligible (fund closed July 2025). Nacelle manufacturing, blade manufacturing, and offshore substation assembly at Teesside qualifies as energy-intensive advanced manufacturing for IETF purposes.
What is Northern Powergrid G99 for Teesside sites?
Northern Powergrid covers Teesside and the North East. South Tees Development Corporation: 6-9 months G99 (heavy industrial grid, generally good capacity). Teesport: 4-7 months. Billingham: 5-8 months. Wilton: 5-8 months.