The developer blamed “ongoing uncertainty in UK energy policy” and  “the Government’s inconsistent support for dedicated biomass energy over the last two years.”

The scheme was set to create 300 construction jobs following planning approval last year.

RES’ Chief Operating Officer for the UK Gordon MacDougall said: “Despite the support the project enjoys locally due to the significant benefits it would bring to the local and regional economy, the North Blyth Biomass Power Station currently faces insurmountable investment barriers due to uncertain Government energy policy.

“It’s bitterly disappointing for RES that we are unable to bring this exciting project forward, and deliver the significant boost it would have represented for the Blyth and Northumberland economy.

“However, the gradual erosion of support for dedicated biomass leaves us with no other option.

“RES is grateful for the support we have received from stakeholders including the local community, Northumberland County Council, Environment Agency and project partners such as the Port of Blyth.

“However as the UK’s energy policy currently stands, we cannot make an investment case to take this project forward.

“This is a reminder to Government that, without a consistent approach to energy policy, investors and developers will be deterred from delivering the billions of pounds needed to ensure the nation’s energy infrastructure is able to keep the lights on and secure cost effective electricity for British homes and businesses.”