The new plant would be built alongside Uskmouth power station

Carron Energy Ltd wants to build a gas-fired power station on the River Usk next to its existing coal-fired plant.

Approximately 600 jobs would be created during the two-year build with 85 permanent jobs on completion.

However the proposals have yet to be submitted to planners.

The firm has to seek consent for the new plant from the Department of Trade and Industry, who will consult Newport Council and a wide range of other bodies before a decision is made, possibly in August 2006.

If it is given the go-ahead, the construction would begin shortly afterwards with completion estimated for August 2008.

Expansion

The privately owned electricity generating company took over Uskmouth Power Station after it went into receivership in June 2004, and it was re-opened last autumn.

The coal-fired plant, which was built in 1959 and employs 90 people, recently underwent a �100m refurbishment to allow continued operations for a further 25 years.

But the firm wants to expand its operations and proposes building the gas-fired plant, which would be known as Severn Power.

It would generate 800MW of electricity, more than twice as much as the coal plant, but would be around half the size, with two exhaust stacks and modern low-level cooling towers.

There will be no additional overhead lines.

We believe this clean, highly efficient plant will make a significant contribution to the local economy Alex Lambie, Carron Energy Ltd

Approximately 600 jobs would be created during the two-year construction period, with 40 permanent jobs at the operational plant and up to a further 45 jobs with companies supplying goods and services.

The firm has said that as the design of the proposed plant advances, public consultations would be held.

Chief executive Alex Lambie said: "We believe this clean, highly efficient plant will make a significant contribution to the local economy and also contribute to meeting the UK's long-term energy needs.

"For us it is crucial to be as environmentally friendly as possible.

"The coal-plant is one of the cleanest in Europe and because we are near a bird sanctuary we feel it is important to consider the environment with the new plant.

"We just feel, if we are going to be part of the community we have got to blend in."

He said that building the new plant had always been in the company's long term plans.

"Power plants are built on a 25-year lifespan so that means there could be good quality jobs for that amount of time if it goes ahead."

But admitted that he expected some form of criticism to the plans.

"It would be foolish to say we won't have any problems," he said adding that the firm looking at making the plant as environmentally sound as possible.

The plans have been welcomed by Newport Council.

Councillor Ray Truman, the deputy leader of the council said: "This major investment is extremely positive news for Newport and confirms its growing reputation as a prime location for investment. The city council is committed to attracting further investment to Newport."