The Scottish government has approved the construction of a new gas-fired power station in Peterhead.
The joint project between SSE and Equinor is expected to generate 900 megawatts of electricity and includes provision for carbon capture.
Supporters of the project have said new carbon capture technology could slash emissions from the new site by more than 90%.
The BBC reports that SSE said its delivery was contingent on progress with the Scottish carbon capture cluster.
Finlay McCutcheon, Managing Director of SSE Thermal, said: "This is an important milestone for a project which has the potential to provide the flexible, low-carbon electricity needed to support a renewables-led energy system while creating and sustaining good jobs in the North-east of Scotland."
John Underhill, Aberdeen University's Director for Energy Transition, said the decision showed the Scottish government's acceptance that gas will be a "vital part of the country's energy and electricity mix for decades to come".