E.ON has been given the go-ahead to progress plans to build a 150MW dedicated biomass powerstation at Royal Portbury Dock in Bristol.
The plant will be fuelled mainly by imported wood, dedicated energy crops and locally-sourced waste wood.
No timetable for the project has yet been announced and the company would not say what proportion of feedstock would be UK sourced.
“We will now take some time to review the prospects for the project in light of the UK government’s current banding review and how it fits with our portfolio of renewable energy investments in the UK,” a statement said.
The news will at least be a welcome boost for the biomass industry, after Drax recently dropped plans to build a dedicated biomass facility at Selby and a fire ripped through the biomass store at RWE npower’s Tilbury site.
As part of E.ON’s plans, a Community Investment Fund will be set up to contribute £50,000 a year for every year that the plant is operating, to support charitable and/or educational community projects. £75,000 will also be allocated to trial green buses and improve cycle routes in the local area.