Drax Power Limited said the plant could be generating electricity by 2015
North Lincolnshire Council has backed plans for a £600m renewable energy plant at Immingham.
Drax Power Limited, which runs the Drax power station near Selby, says the bio-mass power station will create about 1,000 jobs.
The project, which is subject to approval by the Secretary of State, was ratified by North Lincolnshire Council on Wednesday.
If given the go-ahead it could be generating electricity by 2015.
Drax Power Limited said if approved, the station would provide enough green energy to meet the needs of 512,000 homes and save 1.8m tonnes of carbon dioxide every year.
Bio-mass power plants generate electricity by burning a range of fuels including energy crops, wood chips and other material from renewable sources, the firm said.