Scottish Power has received an approval from the British energy ministry to build a gas-fired power station near Hoot St Werburgh in north Kent, England.
The £500m ($790m) plant, Damhead Creek 2, will be constructed next to Scottish Power's Damhead Creek power station.
Upon completion, the plant is expected to generate about 1,000MW of energy, sufficient to supply power to 1.5 million homes.
British Energy Minister Charles Hendry said that the plant will be built 'carbon capture ready' so that eventually, CO2 from the site could be stored under the North Sea.
Scottish Power will progress with further development work on the site over the next few months, and will then set the timescale for the project.