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UK wins EU approval for Lynemouth coal plant conversion to biomass

BRUSSELS, Dec 1 (Reuters) - Britain secured European Union regulatory approval on Tuesday for its plan to finance the conversion of a coal plant at Lynemouth, northern England, to biomass.

The European Commission said a nine-month investigation showed that the project was in line with the 28-country bloc's environmental and energy goals.

"The project's contribution to the European renewable energy and CO2 emissions reduction targets clearly outweighs any potential distortions of competition that could be triggered by the state support," the EU executive said in a statement.

Lynemouth Power, a subsidiary of RWE Supply and Trading , operates the coal-fired plant. UK authorities will grant aid to the plant until 2027. The biomass facility is expected to use about 1.5 million tonnes of wood pellets annually to generate 420 megawatts of electricity. (Reporting by Foo Yun Chee, editing by Julia Fioretti)