Palm Paper can build a new power station at its site near King's Lynn.

The company was yesterday given development consent by the Department of Energy and Climate Change to build the 162MW gas-powered plant next to its paper mill on the banks of the tidal Ouse at Saddlebow.

Due to its size, the application was decided by the planning inspectorate, and it was the 50th nationally significant infrastructure project to be decided following examination by the inspectorate. The company wants to reduce its carbon emissions and its reliance on imported electricity, by generating its own.

A report produced by West Norfolk Council concluded the combined cycle gas turbine plant would help secure Palm Paper's operations in Lynn and create up to 50 jobs during its 18-month construction phase.

Palm Paper King's Lynn mill began production of newsprint paper in August 2009 and produced the one millionth tonne three years later.