POWER generator Drax has been given permission to build two new biomass-fuelled power stations that could create hundreds of jobs.
However, the company warned that developing the new facilities at the existing Drax power station in North Yorkshire and a site near Immingham would depend on Government decisions on future subsidy for biomass.
Energy Minister Charles Hendy yesterday gave the go-ahead for the two 299 megawatt stations which have been developed as a joint venture with engineering giant Siemens.
He said: "It is vital that we get investment in new power stations up and down the country to ensure secure energy supplies for people's homes and businesses.
"I am very pleased to give the go-ahead for these two new biomass power stations in Yorkshire and North Lincolnshire. They will not only enhance our security of supply, but provide low-carbon electricity that reduces our carbon dioxide emissions".
The development of the two stations, which could provide power to more than 500,000 homes, would create an estimated 600 construction jobs and employ a workforce of around 150 once open.
Drax has already invested in new facilities which allow coal and biomass to be burned together to generate electricity but it has repeatedly warned that it needs a clearer commitment of support from Government if it is to expand its use of renewable fuels.
A Drax spokeswoman said that Government consent was needed to develop any power station above 50 megawatts.She said: "The Minister's announcement confirms that part of the process is now complete.
"However, any progress with the investment will be dependent on the Government's final decision on the future support levels under the Renewables Obligation."
Article from Business Desk HERE