Plans have been submitted to build a £20m wood-fired energy plant in South Wales.

Western Bio-Energy, a joint venture between the Western Log Ltd and a major blue-chip utilities company, has submitted an application to build a 10MW capacity plant in Port Talbot. Neath Port Talbot County Borough Council will make a decision by the end of February.

The government-backed proposal is seen as providing a timely boost to the Welsh timber industry, offering a new outlet for forestry and sawmill wood. It is expected to use about 100,000 tonnes of timber annually.

Adrian Whittall, Western Bio-Energy spokesperson, said: “This is an exciting project that will deliver green power and energy, using local biomass resource. It will take up major slack in Welsh output of timber caused by lessening demand from paper plants in North Wales.”

The plant, which aims to generate power for 20,000 homes, is scheduled to open in 2005 and will create 20 jobs on-site.

Port Talbot-based Western Log Ltd, a major timber supplier to the leisure industry, will take responsibility for supplying fuel and hopes to use local firms at all stage of the project.