Major power firm Drax is considering converting to become a predominantly biomass-fuelled generator of electricity.
Chief executive Dorothy Thompson said the firm will initially look to convert three of its six generating units to biomass instead of coal.
So far, the business has spent £20 million in research and development to trial converting one of these unit to fire biomass.
Dorothy Thompson said: “We appreciate the extensive work undertaken by the Government on biomass and we welcome the confirmation of the strategically important role that electricity generated from sustainably-sourced biomass can play in the UK renewable energy mix.
“As a result of our excellent technical progress and the Government’s conclusions on support levels, we are confident that we can transform Drax into a predominantly biomass fuelled generator.
“It will take some time to develop all of the sustainable biomass supply chain to fuel these units, but we believe that within approximately five years, Drax could become a predominantly biomass fuelled plant.
“We are currently refining our previously announced £650 million to £700 million strategic capital investment plan, but remain confident of the overall scale. We will continue to work with Government and Ofgem on the design of practical and efficient regulations for the implementation of these decisions.”