Energy firm RES which will develop the power station, said it will be able to generate low carbon electricity to power the equivalent of 170,000 households — the equivalent of all the homes in Northumberland.
Chris Lawson, RES project manager, said: ” is a welcome confirmation of the Government’s support for sustainable, low-carbon energy projects, which will make a significant contribution towards meeting the UK’s legally binding 2020 renewable energy targets.”
Blythe Harbour will cost £250 million and its construction, which is expected to take two to three years, is set to begin in 2014.
A Decc spokesman added: “Sustainably sourced biomass has an important role to play as part of a balanced energy mix, enhancing energy security and reducing greenhouse gas emissions.”