Scottish and Southern Energy (SSE) has entered into a 50:50 joint venture (JV) with Wheelabrator Technologies to develop a new £300m multifuel generation plant at SSE's Ferrybridge power station in West Yorkshire, UK.
The new JV, Multifuel Energy (MFE), expects to start construction of the 68MW multifuel facility later this year.
SSE managing director of generation Paul Smith said multifuel technology is a tried and tested way of generating clean, base-load power.
"This new multifuel plant will provide additional diversity to SSE's generation portfolio and make a useful contribution to ensuring we have reliable energy supplies for the future," said Smith.
Wheelabrator Technologies managing director Gary Aguinaga said, "Through the Multifuel Energy joint venture, we are combining our expertise and experience to deliver a state-of -the-art facility which will provide significant amounts of clean energy."
The new multifuel pant is not intended to replace the existing 1,000MW of coal capacity at Ferrybridge, which will close in 2015 due to the European Large Combustion Plant Directive.
SSE said it has not yet made a decision on the future main use of Ferrybridge power station.
Work on the project is expected to be completed by early 2015 and when operational, the electricity generated will be sold to SSE.
MFE has also entered into a long-term fuel procurement contract with 3SE, which will provide processed waste-derived fuels using waste taken from nearby Barnsley, Rotherham and Doncaster councils.
Image : Multifuel Energy, a 50:50 joint venture will build a new multifuel generation plant at Scottish and Southern Energy's Ferrybridge power station in West Yorkshire; Photo: Lynne Kirton.