E.ON has confirmed that it will not proceed with the Portbury Dock biomass project but remains committed to investing in the UK.
An E.ON spokesperson said: "We continue to believe the UK could be a good market for investment in which sustainable biomass has an important part to play. In reaching this decision we considered many factors however under the current regulatory and policy framework we concluded that this project was not a priority investment for E.ON.
"We believe that a diverse energy mix is the best way of ensuring security of supply, while minimising our impact on the environment and keeping the cost of generation as low as possible. Therefore it is now critical that we push ahead with the Government's Electricity Market Reform so that we can deliver investment in the UK. This includes dedicated biomass plant such as our Blackburn Meadows project which is due to be completed next year and our Humber Gateway offshore wind farm which is due to open in 2015."