SSE has confirmed it is to close Ferrybridge Power Station.

The energy provider said it had taken the "difficult decision" following a comprehensive review of its coal-fired power stations.

The facility will close by 31 March 2016.

In a statement, SSE explained that costs at the 48-year-old station have been increasing due to its age as well as environmental legislation, and over the next five years, it is forecast to lose £100m. The financial situation, combined with the political consensus that coal has a limited role in the future, means keeping the station open is not sustainable, the company added.

Paul Smith, SSE Managing Director, and Generation, said: "This was a very difficult decision to take because of the impact on our Ferrybridge employees, their families and the community.

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"It's been known for many years that the UK would have to phase out coal as it moves towards a more sustainable energy mix. We've sought to protect jobs and invest in the site to keep it running for as long as we possibly could but ultimately we've had to make this regrettable decision today.

"Our team at Ferrybridge is highly skilled, dedicated, and with a strong track record of performance – and we're keen to ensure, where possible, that staff are redeployed across other parts of the SSE group, for example the nearby Keadby power station; or across the wider business.

"We appreciate it is a concerning time for our employees and our priority is to support them over the coming weeks and months."

SSE has said it will work closely with the 172 employees at Ferrybridge to redeploy them to other sites where possible.

The firm also said it plans to reopen the nearby Keadby Gas Fired Power Station, and remains committed to the Ferrybridge site. A £300m multifuel plant is due to be open by the end of 2015 and will create 46 full-time jobs at the site, with more created in the supply chain. Plans have also been submitted for a second multifuel plant at the site.

(JP)