A major upgrade at Peterhead power station has been announced.
Peterhead aims to produce more power and less carbon emissions
The plans mean that an alternative carbon capture programme is still on the agenda after a scheme with oil giant BP was shelved.
First Minister Alex Salmond said Peterhead was on course to become the largest and most efficient gas generator of its type in Europe.
The new investment will enable Peterhead to produce more power and reduce carbon emissions.
The investment was announced by Scottish and Southern Energy (SSE).
Mr Salmond said: "These are excellent announcements for the future of cleaner and greener energy production in Scotland.
"The power station announcement puts Peterhead on course to become the largest, most efficient combined cycle gas generator in Europe.
"The company's confirmation that tidal, wave and carbon capture are on their immediate agenda points the way to further large investment in Scottish power generation."
Plans for a carbon capture energy scheme at Peterhead were shelved earlier this year when BP said it could no longer wait for a government decision.
About 1,000 jobs were expected to be created if the green project was ultimately given the go-ahead.
SSE said there were alternative carbon capture options for Peterhead.
There are also other locations in Yorkshire and Lancashire which are being "actively explored".