A biomass plant at Lynemouth in Northumberland is one of eight projects, in which the government has announced new investment.
The town was hit badly in 2012 when the former aluminium smelter was closed, with the loss of hundreds of jobs. An adjacent power station, which employed 130 people, was eventually sold to new owners and will now be converted to produce biomass energy.
The other seven projects given new support include Teesside Renewable Energy in Middlesbrough and Drax in Selby, in North Yorkshire, which will both also produce biomass energy. All together, the eight UK projects could support up to 8500 jobs.
More top news
Early report suggest this will take effect from March.
An obsessive stalker who hounded his ex-girlfriend and secretly placed a GPS tracking device on her car faces jail.
A murder trial will now not go ahead after the accused man died in custody.