MILLIONS of pounds are being injected to boost coal-fired power and create 300 construction jobs following a decision by Powergen, operator of Kingsnorth power station, to reinstate a disused generation unit.

The multi-million pound project - Powergen is not disclosing precisely how much it is investing - will also safeguard permanent jobs - 212 people work at Kingsnorth - and boost power capacity to almost 2,000 megawatts. The unit was taken out of service in 1996 when too much pressure caused a breakdown in the boiler.

For many years, power generation switched from expensive coal to cheaper gas. But rising gas prices have brought coal back into favour.

The move is not necessarily good news for British miners because the low sulphur coal needed by Kingsnorth is mainly mined overseas. Plant manager Jim Lightfoot said it was a fantastic decision for Kingsnorth, its workforce and local contractors.

It also signalled long-term commitment to the plant. "It’s very exciting for the site," he said. "Short-term, there will be hundreds of extra people on site. The maximum we will need will probably be about 300 or 350.

“In terms of long-term posts, we are reviewing our structure to see if we can manage or whether we have to increase our numbers.”

The restored unit would meet tough environmental standards, he said. The plant had already invested £3 million in cutting emissions. We continue to work with the Environment Agency to continually improve our emissions and effect on the environment."

He said the decision would not increase the number of lorries on local roads because the coal came by ship.

Paul Golby, Powergen's UK operations director, said: 'Additional capacity at Kingsnorth will provide us with an important source of lower cost generation, increasing our flexibility and competitiveness.

“There is no doubt that high gas prices have also resulted in coal becoming a more

economically viable fuel for us.”

Work starts soon and the project is expected to be complete by next summer.