Electricity and natural gas distributor Nuon has decided to build its planned multi-fuel power plant in the Dutch province of Groningen in phases due to high building costs.

As a first step, the natural gas-fired part of the power plant will be built, followed by the part in which coal and biomass are gasified. Nuon expects that within two years it will be able to make a decision on the construction of the gasification plant.

When the gas-fired plant is completed, it will be equipped for connection to the gasification plant, which makes it possible to co-gasify biomass on a large scale and to capture CO2.

The gas-fired unit will be operational in 2011 and, with a capacity of 1,200MW, will be able to supply energy to more than two millions households.