The UK Government has granted planning permission for a new £300 million power station in West Yorkshire.
DECC approved the development of the Ferrybridge Multifuel 2 Power Station at Knottingley, which is expected to create 500 jobs during construction.
The plant will be capable of generating up to 90MW of electricity, enough to power around 160,000 homes.
It will have the capacity to process up to 675,000 tonnes of waste derived fuels from various sources of municipal, commercial and industrial waste which would otherwise go to landfill.
Energy Minister Lord Bourne said: “This exciting project that will turn waste into energy is a great example of how innovation can help to power our homes and add to our energy mix.
“This project will offer secure energy to Britain’s hardworking families and businesses, creating jobs and financial security for working people and boosting the Northern Powerhouse.”
Construction of the project, a joint venture between SSE and Wheelabrator Technologies, is expected to take around three years.
It will be located next to the Ferrybridge Multifuel 1 power station, which entered commercial operations earlier this year.