Belgian firm C-Gen wants to build a gas-fired power station with carbon capture in Killingholme, North Lincolnshire.
BBC: Carbon dioxide from industry could be buried offshore
The government also looked at sites at Killingholme and Hooton Park but decided not to proceed with them.
BBC: Residents to fight asylum plans
They had been building another plant next to the existing site in Killingholme.
BBC: Refinery sackings spark walkouts
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