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Chemical firm Air Products has paused construction of a 拢250m waste-to-energy plant in Teeside, putting 700 jobs at risk.

Air Products 鈥� which is providing engineering, procurement and construction (EPC) management on the scheme as well as being the client 鈥� said it was pausing the scheme, which is the second of two plants in Teeside it is developing, after identifying 鈥渋mprovements鈥� that needed to be made on the first plant that would be 鈥渁pplicable to our second plant鈥�.

The firm said construction of the second plant, known as Tees Valley 2, was on hold 鈥渢emporarily鈥�, but added the duration of the pause is 鈥測et to be determined鈥�.

Union GMB warned the pause would put 700 jobs at risk and said it was in talks with Air Products 鈥渢o try to resolve this appalling situation鈥�.

Construction on the Tees Valley 1 and 2 gas power plants started in June 2014 and were due to be completed in 2017, with a generating capacity of 49.8MW.

In a statement, Air Products said: 鈥淎s with many ground breaking projects, improvements are identified as construction advances and new solutions put in place.  This is the case for our first renewable energy facility currently being built (TV1). 

鈥淭he learnings we are making here will be applicable to our second plant.  By deferring construction we will be able to ensure any modifications are applied to TV2 in a cost-effective way when activity is resumed.鈥�

The firm also said work on the first plant wouldn鈥檛 be interrupted, while it 鈥渞emains committed to completing both facilities as soon as possible.鈥�

It added: 鈥淲e will work with our contactors to wind down TV2 construction activity in a controlled way.鈥�

Air Products said the pause in the long-term, will 鈥渁id the overall operational success and future of both our renewable energy facilities at Teesside.鈥�