A 49 MW biomass power station in Teesside has been given planning approval by Stockton Council.
The scheme is being backed by Port Clarence Biomass, a subsidiary of Cardiff-based renewable energy company Eco2.
The capital cost of the project, at Port Clarence on land close to the Transporter Bridge, is estimated to be around £160M.
The plant is expected to burn some 325,000 tonnes of waste wood a year, with the fuel drawn from construction and demolition sites, civic amenity sites, and packaging.
The plans for the biomass plant were first drawn up in 2009 but failed to attract funding.
The Port Clarence development is the largest type of biomass plant that can be approved at local authority level.