VILLAGERS could see their energy bills slashed by 20 per cent if plans to build one of the UK’s greenest power stations in the region are approved.

French-owned Dalkia hopes to build a £40m combined heat and power (CHP) plant in Chilton, County Durham, and promises most of the money will be spent locally.

Up to 115,000 tonnes of wood could be diverted from landfill to power the plant, which would be capable of producing 50,000 tonnes of wood pellets for use off-site.

Electricity from the 15MW plant, which could power 15,000 homes, will feed the National Grid and there are plans to supply cheaper energy locally.

Hot water could also be provided by the site, known locally as Chilton Cathedral, on Chilton Industrial Estate, which would employ 27 permanent staff and 50 during its two-year construction.

Dalkia has 100 such plants across Europe, but said this would be one of the first biomass CHP schemes in the UK, and could place Chilton at the forefront of the Government’s drive to use new energy technology.

The system, which uses fine wood dust to generate high pressure steam to turn turbines, is totally carbon neutral.

By Chris Fay chris.fay@nne.co.uk Plans for a CHP plant have been put forward by Esh Developments as part of its plans to build a commercial and residential development north of Chilton.

About 250 zero carbon homes could be built in the scheme, as well as a commercial zone and health centre.

Geoff Woodcock, operations director for Esh, said they support Dalkia’s plans, as does Chilton Town Council and a petition of 341 residents.

Mr Woodcock said: “It was quite a coincidence we were looking for someone to operate a CHP plant as part of our plans, but Dalkia had already identified the site for a much larger plant.”

Mr Woodcock said Esh remains committed to delivering the Chilton development and an application is expected in two to three months.

Durham County Council planners have recommended the plant for approval, but councillors will have final say when they meet on Tuesday.

Dalkia said it would be inappropriate to comment before that meeting.