The company said that the proposed plant will save up to 75,000 tonnes of CO2 emissions each year by replacing energy generated by conventional means.

Peel Energy claims that the plant will provide enough renewable electricity to power up to 37,000 homes – more than one-third of the homes in Trafford.

The company is also investigating whether the plant could supply heat directly to local industry and businesses, including the Trafford Centre and firms in Trafford Park and Port Salford.

The company said that electricity generated from the plant will be distributed to the National Grid by an underground cable, negating the requirement of overhead cables and pylons.

Jon England, project director at Peel Energy, said: “Our venture into dedicated biomass-fired energy generation will contribute towards government targets for higher levels of renewable electricity generation and help provide secure energy supplies for the region.”

The proposed plant is expected to generate over 100 jobs during the two-year construction phase, and will be operated by at least 15 full-time staff.