RWE Supply & Trading is to sell the 420MW Lynemouth power station to EP UK Investments, which is a subsidiary of Energetický a prumyslový holding, a Czech energy group.

Lynemouth, a 420MW coal plant in Northumberland, stopped generating in December under environmental rules but is due to be converted to burn wood pellets and reopen within about 18 months.

Neil O’Hara, of EPH’s UK subsidiary, said it would work with the team at Lynemouth to try to reach a final investment decision on the project within the next month or two and believed it would “achieve its ambitions”.