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Tesco has been given the go-ahead to build Britain's first straw-powered Combined Heat and Power plant to meet the electricity and heating needs of its Goole Distribution Centre, according to an AFN report.

The new plant will generate enough power to run eight Tesco Superstores. And because straw is a renewable material rather than a fossil fuel, the CO2 emitted is equal to the amount absorbed while growing, which effectively makes it carbon neutral.

Tesco estimates that it will have recouped the £12m set-up costs within six years, and has set itself a target to halve the carbon footprint of its estate (as at 2006) by 2020.

“We’ve set ourselves stretching targets to reduce the carbon intensity of our business, and energy from renewable sources is a key part of our strategy,” said David North, Community and Government Director. “We’ve identified five sites that would be suitable for further biomass technology, and are making big investments in wind turbines, too.”