Teesside Freeport

Teesside Freeport covers 4,500 acres in total and includes the Teesworks site, Wilton International, Teesside International Airport, the Port of Middlesbrough, the Port of Hartlepool, and Tees Dock.

Teesside Freeport offers a range of incentives relating to customs, tax, planning, infrastructure and innovation. See further details on the benefits of Freeports.

Tax benefits are available at the Freeport’s 3 tax sites, located at:

• Wilton, comprising the Wilton Centre, one of Europe’s largest research and development facilities, and Wilton International, Britain’s biggest chemical complex
• Teesworks East (and customs zone), including Redcar Bulk terminal, the deepest terminal on the east coast of the UK, ideally located to serve the offshore wind industry
• Teesworks West (and customs zone), providing immediate access to the River Tees and the North Sea via the new and dedicated South Bank Quay

Sector and market opportunity

Teesside Freeport builds on existing manufacturing strengths, particularly in chemicals and materials processing, offshore wind, hydrogen and renewable activity.

The Freeport is well placed to service the UK’s 8+ gigawatt of installed offshore wind assets and the 2.6 gigawatt in construction. Multiple major players in the offshore wind turbine manufacturing sector have already invested in the area.

Net Zero Teesside (NZT) has been established as a collection of industrial, power and hydrogen businesses aiming to decarbonise their operations through the deployment of carbon capture utilisation and storage (CCUS). The cluster includes a £1.5 billion fully-integrated gas-fired power and carbon capture project and 2 large scale hydrogen production facilities, making this an ideal landscape for companies at the forefront of the net zero agenda.

Tees Valley is a global leader in the chemicals and processing sector. Here companies can benefit from being a part of the second largest chemical complex in Europe in terms of manufacturing capacity. They also have access to world-leading R&D centres such as the Wilton Centre and Centre for Process Innovation (CPI).

Growth prospects

The Freeport benefits from a readily available local workforce, as well as being one of Britain’s largest chemical clusters. Teesside and the surrounding area also boast existing specialisms such as offshore wind, hydrogen, chemicals, and engineering, with the skills and workforce to match. The Teesside Freeport will have access to a share of £200 million of government funding to become a UK clean energy powerhouse, whilst supporting the region’s levelling up ambitions.

According to the Offshore Wind Industry Council (OWIC), the sector is expected to see £155 billion of private investment in new offshore wind projects between 2022 and 2030. By 2030 the UK-wide hydrogen economy could be worth £900 million.

The UK chemicals sector also brings in more than £28 billion of gross value added (GVA) and a turnover of £73.7 billion.

Location

Located in the North East of England, Teesside Freeport is perfectly placed to offer instant and efficient connectivity to the rest of the UK and Europe. Teesport, the UK’s fifth largest maritime complex, and a new 1km quay at South Bank, make the Tees Valley a major export region and go-to destination for renewables, offshore wind, and hydrogen manufacturing. This is supported by its close proximity to the majority of UK wind farms. The Freeport also boasts investment from the Tees Offshore Manufacturing Centre and the UK’s most developed carbon capture, storage and usage (CCUS) project, Net Zero Teesside; both located at Teesworks.

Connectivity

Teesside Freeport gives direct access to 10 miles of operational river along the Tees, which is home to some of the deepest berths on the east coast and one of the UK’s busiest ports. A new dedicated quay at South Bank is currently under construction which, upon completion, will service the offshore wind sector.

Teesside is centrally located between London and Edinburgh, making it easy to reach the whole of the UK via a strategic road and rail network.

Teesside International Airport offers global reach, with regular direction connections to London Heathrow and Amsterdam’s Schiphol Airport.

Local talent and skills

In the North East, there are nearly 18,000 students and 4500+ graduates in STEM subjects, related to offshore energy, engineering and biomanufacturing.

There are 19,000 people in the manufacturing and engineering sector, 26,000 in the offshore wind sector and over 8,000 in the biomanufacturing industry.

National government support

As specially designed areas with beneficial economic regulations, Freeports can help you achieve sustained growth, and may be able to save you time and money through:

Tax reliefs

• Stamp Duty Land Tax relief
• enhanced Capital Allowances for investment in plant & machinery and structures & buildings
• five years of Business Rates relief
• employer National Insurance contributions relief

Customs and planning

• simplified customs procedure
• deferrals and exemptions from duty payments
• VAT suspension within customs sites
• supportive local planning environments with constructive public-private partnerships

Innovation offer

• extensive public investment in skills and infrastructure
• access to the Freeport Regulation Engagement Network (FREN), enabling direct and early engagement between businesses, Freeports, and regulators
• access to the Freeport Innovation Network (FIN), a collaboration vehicle for Freeports to shape and organise their innovation activity as a collective