E.ON has today revealed that it plans to start building a GBP120m ($190m) biomass plant in the UK at the end of this month.

Once operational in 2014, the plant near Sheffield will generate up to 30MW, enough to power 40,000 homes, by converting recycled waste wood into electricity.

E.ON will use UK-sourced waste wood to power the plant and will put in place a community benefits fund worth up to £25,000 a year to support local projects throughout the lifetime of the plant. 

The company already owns and operates a 44MW biomass plant near Lockerbie in Scotland, which produces enough power to supply around 70,000 homes.