It will be fuelled by waste wood, specially grown crops and the leftovers from timber processing activities sourced from the UK and Europe.
The plant will produce 65 MW of power and will generate onsite electricity and export any surplus to the local electricity network. When it is built, the plant could produce enough green energy to power the equivalent of about 100,000 homes.
Wicks said: This is another stepping stone towards powering a greener, cleaner UK. Not only does it help tackle climate change and increase secure supplies of energy, but the building and running of this biomass plant will also provide jobs in Lincolnshire.
This announcement takes us closer to achieving our proposed renewable energy targets. We have doubled the amount of renewable electricity to 5% over the last few years, and later this month we will be launching our consultation on how we can drive this forward even further.
Construction of the plant will cost £200 million and is expected to start later this year and be operational by 2011. The biomass power plant will need 430,000 tonnes of sustainably sourced feedstock each year.
Image: Helius energy Stallinborough site aerial shot