Brigg Power Station looks set to close, owners Centrica announced this morning, Thursday February 19.
The company said it would begin consulting with the 50 staff it employs there and at nearby Killingholme, which also faces closure.
Centrica blamed the likely closures on the two plants losing money.
The announcement came as Centrica announced a 35 per cent drop in profits to £1.75Bn.
A Centrica spokesman told the Rasen Mail that closure could not be confirmed but it was starting a consultation process for the “potential closure” of both plants.
No specific date for the closure has been set, with it occurring any time until 2016.
“There are other operations in the short term market (we could win) which could extend its life until next year,” he said.
“The power stations have been losing money for a number of years. They didn’t win any contracts in the capacity auctions in December. For them to compete, it would take a significant amount of investment. This is very difficult to do if you have a loss making investment,” the spokesman continued.
Centrica also released a statement featuring managing director of its power generating business, Simon Merriweather.
“Unfortunately we’ve had to make the difficult decision to consult on closing the Killingholme and Brigg power stations. We know this is an unsettling time for the team and the news will create a great deal of uncertainty, but we will be doing everything we can to support them in the coming week.
“We have also taken the decision not to sell South Humber Bank power station. We’re incredibly proud of our team and what they do on site and I don’t think that the offers we received reflect the value that we place on these operations.
“We will therefore continue to operate the power station, which will play an important role in keeping the lights on for thousands of homes,” he said