Hundreds of new jobs could be created on the outskirts of Ashington after plans for a new biomass plant moved a step closer.
Lynemouth Power Station has been chosen as one of eight recipients of contracts for renewable electricity projects, with the switch from a coal fired power station to operate wholly on biomass, taking place in 2015.
The eight projects in the country will provide up to £12bn of private sector investment, supporting 8,500 jobs.
Managing director of Lynemouth Power, Bob Huntington, said it was a great boost for the Lynemouth project, and for the local area.
Wansbeck MP Ian Lavery added: “This is excellent news as it means it will enable RWE and Lynemouth Power to convert from coal to biomass knowing full well that they have the go-ahead of the government in terms of a contract for difference.
“It gives RWE the confidence in investing, and it will bring up to 420 jobs to construct the new converted plant, which is fantastic.
“They are temporary jobs, but it is still jobs in the region, which is extremely important, so the creation of jobs is good news.”
Energy and climate change secretary Edward Davey said: “These contracts for major renewable electricity projects mark a new stage in Britain’s green energy investment boom.
“By themselves they will bring green jobs and growth across the UK, but they are a significant part of our efforts to give Britain cleaner and more secure energy.”
The eight successful projects have been awarded contracts under the Final Investment Decision (FID) Enabling for Renewables process, allocating the first CfDs that are being introduced through the Electricity Market Reform programme.