Negotiator Mike Macdonald said: “Government consent has been given, and that’s an important step, but several hurdles still need to be overcome.

“Investment in environmentally friendly biomass at Ferrybridge, which currently employs 250 people, will protect some of the jobs scheduled to be lost when half of the existing coal-fired station closes in 2015. At the moment 100 jobs are set to be lost, but now 30-40 of these will be saved.” In addition there will be construction jobs created to build the plant.

Macdonald added: “In relation to a new gas plant at Thorpe Marsh – on the existing site of the former power station – we hope that energy market reforms will enable the plant to be built, providing much needed, highly skilled employment in South Yorkshire.

“It is a prime site, with existing connections to the National Grid. The only problem is that without energy market reform, the consortium that plans to invest will find it difficult to sell the electricity produced. The government urgently needs to address the difficulties facing independent generators in the light of the domination of the big six energy companies.”