Drax power station is set to provide Liverpool with a new £100 million biomass terminal, which will handle up to three million tonnes of wood pellets every single year.
The move comes as part of the power station's ongoing decarbonisation project, and the biomass terminal alone is forecast to bring about an annual 12 million tonne reduction in its carbon footprint.
A new, sustainable low carbon fuel source will be provided by the wood pellets, which are produced as a by-product of commercial forestry and sawmilling in the US.
Chief executive officer of Drax Andy Koss emphasised the importance of decarbonising his firm's entire supply chain - from fuel harvesting to transport.
"By shipping to Liverpool and transporting our biomass via rail, Peel Ports have provided us with a logistics solution which minimises carbon emissions and helps us maintain our low-carbon manifesto," he remarked.