The European Commission has given €300m funding to support a carbon storage project in the UK.
The White Rose project based at the Drax plant in Yorkshire is expected to maintain up to 2,000 jobs and provide clean electricity to more than 630,000 homes.
When the clean coal power plant is constructed it would capture 90% of its carbon dioxide emissions and store two million tonnes of carbon dioxide per year under the North Sea bed.
Energy and Climate Change Secretary Edward Davey said: "This is great news for Yorkshire and for Britain. White Rose will create thousands of green, local jobs and make a real difference to cutting carbon emissions.
"The UK is at the forefront of developing carbon capture and storage, with excellent potential for storage in the North and Irish Seas, and the expertise in operating offshore to make it a reality.
"And as a world leader in the technology, as carbon capture and storage is commercialised Britain will be in first place to export this knowledge to a decarbonising global economy."
UK
Ireland
Scotland
London











