A power plant labelled one of the worst in the UK for pollution is to supply energy generated from wood shavings.
Didcot Power Station provides electricity for two million homes
The Didcot A station will now provide electricity for 100,000 homes created with the use of carbon-neutral fuels, as well as coal-fired power production.
A new facility will use bio-mass fuels which absorb as much carbon dioxide when growing as they create when burnt.
A 2003 survey by campaigners Friends of the Earth put Didcot A in a league of inefficient "carbon dinosaur" stations.
The station's owners have said about 300,000 tonnes of coal used each year could be replaced with bio-mass fuels.
A spokesman for owners Npower told BBC News: "It's a quite significant increase in the amount of bio-fuel that we can burn.
"We're opening the £3.5m facility which can blend in greater volumes - displacing coal that could be burnt otherwise."
He said the amount of power supplied using the bio-mass fuel was equivalent to that created by a large wind farm.
The company has been trialling the use of bio-mass fuels which include sawdust, wood chip, elephant grass and miscanthus grass over the past four years, working towards the new Didcot scheme.
The spokesman added: "These are by-products from other industries, but the goal is it to create an energy crop industry."
Duncan McLaren, a spokesman for Friends of the Earth, who compiled the league table of polluting stations, said coal-fired stations pump out three times the amount of greenhouse gases as gas-fired stations.