The energy specialist said local suppliers and subcontractors would benefit from the scheme during a two-year construction phase due to start in 2012.

Electricity would be distributed to the National Grid by an underground cable, while heat would be fed to local businesses by an underground pipe network.

The 20MW biomass plant, on the banks of the Manchester Ship Canal by Barton Bridge, would burn recycled wood including by-products from agriculture and forestry.

Peel needs the approval of Trafford council to go ahead with the Barton Renewable Energy Plant and must now consult with interested parties, including residents and businesses.

Jon England, project director at Peel Energy, said: “Our venture into dedicated biomass-fired energy generation will contribute towards government targets for higher levels of renewable electricity generation and help provide secure energy supplies for the region.

“We are keen to hear from as many interested parties as possible during our consultation phase.”

It is expected that a planning application will be made to Trafford council in the autumn.

If planning permission is granted, it is envisaged that work could begin on the site in early 2012 and the plant could be generating electricity by mid-2014.

Peel estimates the plant would save up to 75,000 tonnes of CO2 emissions each year and would power the equivalent of 37,000 homes.