At 150MW, the proposed Portbury Dock Renewable Energy Plant would generate enough power for more than 200,000 homes by burning wood that would largely be brought to the plant by boat.

Dr Paul Golby, Chief Executive of E.ON UK, said: "This scheme would be one of the largest biomass power stations ever built in the UK and would make a considerable contribution to helping the Government meet its renewable energy targets. 

"Schemes such as this, together with cleaner coal, gas and new nuclear, will help us to keep the UK's lights on, while also reducing carbon emissions and ensuring energy is as affordable as possible for our customers."

E.ON has issued a scoping statement to North Somerset Council, the Department for Business, Enterprise and Regulatory Reform (BERR) and other interested parties outlining the company's plans and hopes to submit a full application to BERR in the middle of next year.

If the project gets the green light, construction is expected to start in 2010, with the first power being produced in 2013 and full operation would be reached in 2014.

Portbury Dock is the third of E.ON's biomass developments in the UK. The company already operates Scotland's largest dedicated biomass power station at Steven's Croft near Lockerbie and, earlier this year, received permission for a 25MW biomass station in Sheffield.