It says it plans to build three new biomass-fired stations in a joint venture with Siemens.

The power stations will be at the ports of Immingham in Lincolnshire and Hull and at the company's existing site near Selby. Together, they will produce 900 MW of power.

Work is expected to start on the first of the three plants in 2010 and, when all three are completed, Drax expects to provide at least 15%  of the UK's renewable energy and up to 10% of total UK electricity.

The first of the new power stations is set to come on stream from 2014 and will provide “a significant contribution to the UK’s renewables target and (support) national security of supply requirements,” Dorothy Thompson, chief executive of Drax, said.