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 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 + Freeport ECA stacking
Offshore wind component manufacturing at South Tees (nacelles, blades, towers, transition pieces, cable terminations) qualifies for IETF 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?
Yes. Dogger Bank Wind Farm (the world's largest offshore wind farm under construction — Equinor/SSE) Teesside supply chain manufacturers are IETF-eligible. 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.