Multifuel Energy Ltd (MEL), a joint venture (JV) between SSE and Wheelabrator Technologies, is developing the project.
FM2 will process up to 675,000 tonnes of waste derived fuels from various sources of municipal solid waste, commercial and industrial waste per year.
The facility is to be located on land next to the newly developed Ferrybridge Multifuel 1 (FM1) project and will produce around 70MW of electricity.
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FM2 represents a £300m investment by MEL and will create:
• 500 construction jobs
• Approximately 40 new full time operational jobs
• Supply opportunities boosting the local economy with at least £10m over the three year construction phase.
Tom Maillet, Director of Engineering and Operations for Multifuel Energy Ltd. said: "We are delighted that the Secretary of State has made the decision to grant planning permission for the Ferrybridge Multifuel 2 project.
"We believe that the Multifuel 1 project, which is fully operational, and the Multifuel 2 project can make a positive, low carbon contribution to the UK's electricity supply and help to reduce the amount of waste sent to landfill."
Energy union GMB has also welcomed FM2 being awarded planning consent.
Phil Whitehurst, GMB National Officer, said: "GMB welcome this next step in moving on for this much needed power plant. GMB will be in talks to ensure that the construction takes place under the auspices of the National Agreement for Engineering Construction Industry."
Following a final investment decision, construction is expected to begin in 2016.
(LM/CD)
