E.ON has unveiled plans to start construction on its biomass-fired renewable energy plant in Sheffield in the UK later this month.

The plant will be built at a cost of £120m and is expected to open mid-2014.

The facility will convert recycled waste wood to generate 30MW of electricity, enough to power 40,000 homes.

Dave Rogers, E.ON regional director for renewables, said: "The plans we’ve announced not only set out the final design of the power station but also confirm our intention to begin construction later this month.

"As our commitment to Sheffield demonstrates, we’re leading the development of renewable energy in the UK and biomass power stations, such as Blackburn Meadows, form an important part of that low carbon solution."