Greenergy, the UKs largest biofuel supplier, will refurbish existing tankage at Vopaks Seal Sands terminal to create an 80 million litre advanced petrol, diesel and biofuel blending terminal, in a scheme worth more than £10 million (11.2 million).
The facility will deliver diesel supplies by June and full petrol and diesel blending and loading facilities from April 2010.
Vopak will continue to own and operate the terminal.
The company was the first to supply biofuels to the UKs forecourts and since 2005 Greenergy has supplied around a third of all biofuel in the UK.
Greenergy, which also recently acquired the Mayflower and Cattedown terminals in Plymouth, will use around a third of existing capacity on Teesside.
