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Energy giant E.ON has unveiled plans for its £120 million biomass plant in Sheffield.
The new facility, which will be located near the former site of the Tinsley cooling towers in Blackburn Meadows, will generate enough electricity to power 40,000 homes.
Recycled waste wood gathered from across the UK will be used to generate up to 30 megawatts of electricity at the plant, which is expected to become operational in 2014.
E.ON also revealed that the project will result in the creation of around 30 jobs, a move which has been widely welcomed by local MPs.
Clive Betts, MP for Sheffield South East, said: "I recently visited Blackburn Meadows and I am pleased that construction of E.ON's new biomass renewable energy plant is now due to commence.
"This is great news for the area and will deliver a much needed boost for local jobs."
A community benefits fund, worth up to £25,000 a year, will also be set up by the energy firm to support local projects throughout the lifetime of the plant.
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