A Yorkshire mining entrepreneur is set to win €180m (£164m, $264m) of European Union funding to build Britain’s first large-scale “clean coal” power station, as his long career in the industry enters a new phase.

Richard Budge, chief executive of Powerfuel, based at Hatfield in Yorkshire, said the funding pledge for the project, which is due to go into operation by 2015, would help meet the £2.4bn cost of the plant.