a waste conversion plant in Billingham and two new biomass power stations in Yorkshire and Lincolnshire have been given the go ahead by the government.

UK Energy Minister Charles Hendry announced the acceptance of the proposal from Drax, who owns the country’s largest coal-fired power station.

The two plants are of 299MW capacity each, but the plans will reportedly be scrapped if the government does not up the subsidy available.

Air Products, announced on Wednesday that it had received planning permission for a plant that would convert waste into gas, producing enough energy for 50,000 homes and taking 300,000 tonnes of waste a year from landfills.

The proposed 49-megawatt power station will be constructed at a site near Billingham, the company said today in a statement. The plant may be operational in 2014, subject to financing.

Ian Williamson, from Air Products said: “Our facility will be using the latest and most advanced gasification technology from AlterNRG to generate renewable power and at the same time, contribute towards Stockton Council’s environment, energy and economic investment objectives.”