The project will aim to demonstrate the carbon capture element of the process over a two year period. The 100t/d pilot plant will not operate commercially during the two year trial.

This comes as Yorkshire and Humber was named by Energy and Climate Change Secretary Ed Miliband as the first low carbon economic area for Carbon Capture and Storage (CCS).

Ian Marchant, chief executive of SSE, said: “CCS could contribute significantly to meeting UK and EU climate change targets. The development of this technology needs to be a collaborative process and, by working together, SSE, Doosan Babcock and Vattenfall will gain a better understanding of how CCS technology can be used in the future.”

Bjarne Korshoj, vice president, head of CCS at Vattenfall, said: “The Ferrybridge plant is the important step in scaling up the CCS post-combustion capture technology from research and development to the commercial plants that we anticipate will follow in the years after 2020.

“The results will be most valuable to us collaborating at Ferrrybridge, but also for the CCS development in general. The world needs CCS to tackle climate change.”