The processing works will receive, handle, store and process various biomass materials ready for direct injection into the power station’s coal-fired boilers. Drax expects to award contracts for the direct injection equipment and the rail unloading facility in the next few months.

The contract has been awarded following a competitive tender process and marks the first major project for Alstom at Drax. Work begins immediately to prepare the site for construction which is scheduled to start in the second half of 2008. Commissioning of phase one of the project will be completed towards the end of 2009.

Dorothy Thompson, Chief Executive of Drax, said: "Delivering significant fuel diversification and carbon abatement is central to our business strategy. Meeting our 10% co-firing target is key to achieving our goal of 15% carbon abatement and this contract represents a major milestone in the execution of our co-firing project.

"At Drax, we are only too well aware of the need to tackle climate change and we firmly believe that we are part of the solution. We have a role to play in the transition towards a low carbon economy whilst delivering reliable supplies of electricity."

Patrick Fragman, Managing Director at Alstom, said: "Alstom recognises Drax Power Limited’s long term commitment to their continual reduction of CO2 and are very proud to be associated with the largest biomass co-firing project in the world. This contract underpins Alstom’s position as world leader in delivering biomass co-firing solutions worldwide to contribute to the fight against climate change, in line with its clean power strategy."