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A major flood defence scheme has been approved to help protect industry and infrastructure.
The £25 million Greatham North East flood alleviation scheme, designed to reduce flood risk in Hartlepool and address coastal erosion, has been given the go-ahead by Hartlepool Borough Council.
The scheme will also support nationally important infrastructure and restore lost intertidal habitat.
Joe Reed, project manager for the Environment Agency, said: "The exciting project will improve the area’s resilience to the changing climate and will improve defences in this area to manage flood risk over the next 50 years.
"With the creation of new vital habitat for wildlife, it will improve biodiversity in the area and help people reconnect with nature."
Construction is expected to begin in early 2027 and will take around two years to complete.
The scheme forms part of the wider £30 million Tees Tidelands Programme, which aims to realign flood defences, restore intertidal and river habitats, and reconnect tributaries and local communities with the estuary.
Plans include building a new 1.5km embankment at Greenabella Marsh, followed by breaching the existing Greenabella embankment to improve flood resilience and mitigate the effects of climate change.
Clay for the new embankment will be taken from Marsh House Farm, an Environment Agency-owned site nearby.
Once excavated, the land will be transformed into a saline lagoon, creating further wildlife habitat.
The project will also restore a large area of mudflats and saltmarsh on the Tees Estuary.
These habitats have been largely lost over the past 200 years due to industrial development, with less than 10 per cent remaining.
The restored areas will support wildlife and capture tonnes of carbon each year.
Mr Reed said the existing flood defences are in poor condition and difficult to maintain.
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He said: "Structural investigation identified that Greatham Creek embankment and Greenabella embankment are both in a poor condition.
"Both are difficult to maintain due to the way they were constructed, out of slag boulders in the late 19th century, a byproduct of industry at the time."
The scheme has been backed by industry stakeholders and nature conservation groups, including Natural England and the RSPB.
A spokesperson for the Environment Agency said work will now continue to secure the necessary licences and consents before construction begins in early 2027.