The £650m Ouse Renewable Energy Plant at Selby and the Heron Renewable Energy Plant at Immingham will each produce enough electricity to more than 500,000 homes.

During construction, both developments will employ an average of around 600 people on site and have total workforces of around 150 when operational.

Hendry said: “It is vital that we get investment in new power stations up and down the country to ensure secure energy supplies for people’s homes and businesses.

Drax proposes to start construction work by early 2012, with the plant becoming operational in 2015.