WORK on a new £40million power station -- designed to cut a major employer's massive electricity bill -- is to officially start this week.

Scottish Power is building the electricity site at the Sappi's paper mill at Feniscowles, Blackburn.

The station will eventually lead to 12 full-time jobs.

More than 90 workers will work on building it over the next 18 months.

The plant will supply the mill with its electricity and steam and save Sappi about £1million a year in energy costs.

The rest of the station's output will be distributed to Scottish Power's customers throughout the North West. It will produce enough power for the equivalent of 52,000 homes.

The gas-fired generating station is twice as efficient and will produce less emissions than a conventional power station. Sappi said the reduction in energy costs would help it remain competitive.

Lord Patel of Blackburn will perform the official ground-breaking ceremony on Thursday.

"Along with our own investments in the mill this represents a multi-million pound investment in the local economy," said Wolfgang Pfart, chief executive officer of Sappi.

"The new plant will provide significant impetus for our drive to ensure that this mill remains competitive in the world paper market."

Just over two years ago Sappi completed a £40million investment at the mill to produce a new grade of paper which will be used in catalogues, brochures and leaflets.

The power station project was delayed two years ago while Sappi and Scottish Power waited for the Government to give it the go-ahead.

Picture: Aerial view of the Sappi paper mill site, where the new £40m gas-fired power plant is expected to cut electricity bills by £1million a year