A leading energy firm has decided to press ahead with building a waste-to-energy plant, creating 500 construction jobs.
SSE said building work on the Ferrybridge Multifuel 2 project in West Yorkshire is expected to start later this year.
The plant will generate enough electricity to power around 170,000 homes.
A contract has been signed with Swiss-based Hitachi Zosen Inova (HZI), which was the main EPC contractor on the neighbouring FM1 plant.
Charlie Cryans, head of construction for SSE, said: “SSE’s decision to take the FM2 project through to construction is positive for our businesses, but also represents a £360 million investment, which will provide a range of benefits for the local area which we have a long association with.
“We will be holding a Meet the Buyer event in the coming weeks, which will provide local businesses and suppliers with the opportunity to meet the main contractor for the project, and pitch their products and services.”
Franz-Josef Mengede, chief executive of HZI, said: “We are delighted to be working with SSE to build the second multifuel project at Ferrybridge.
“Our experience during the construction of the now operational FM1 plant will be invaluable in helping us to deliver this second plant and meet the high standards required by SSE.”
The multifuel power station will produce low carbon electricity through the combustion of waste derived fuels (WDF).
The WDF will be derived from various sources of processed municipal solid waste, commercial and industrial waste and also waste wood.