The project aims to build a carbon capture and storage plant designed to pump and store carbon dioxide under the North Sea.

The funding for project, which is a joint venture between Drax Power, Alsthom and BOC, is worth just under £240m and will support the construction of a 425MW clean coal plant at Drax.

It is the only the only clean coal project supported by the European Commission’s NER300 programme for innovative, low-carbon energy demonstration projects.

Prospect negotiator Mike Macdonald said: “This project will provide high-skill, high-value employment in Yorkshire, boost the security of our energy supplies and give Britain world-class expertise in a technology it can export.

“The success of White Rose is testament to the skills and ingenuity of our members at Drax and reinforces Yorkshire’s role as a centre of energy excellence.

“This is a good day for a balanced energy policy. CCS protects the environment while providing a long-term future for coal so we look forward to the government establishing a market mechanism that allows this technology to play its role in keeping Britain’s lights on.”