Nov. 2--Xcel Energy said today it has received permission to build the Midwest's largest biomass power plant in Ashland, Wis.

The Public Service Commission of Wisconsin on Friday unanimously approved Xcel's application to convert the last remaining coal-fired unit at its Bay Front Power Plant to biomass gasification technology, Xcel said.

The $58.1 million conversion project is expected to begin next year and be producing power by late 2012, Xcel Energy said. Ashland is about 69 miles east of Duluth.

When completed, the plant's power total output will drop from 70 megawatts to 60 megawatts, but still produce enough electricity to supply about 50,000 homes, Xcel said.

The Bay Front Power Plant was originally built in 1916 with five coal-fired boilers. Two boilers have since been retired and two boilers were converted to burn primarily wood biomass in the 1970s, the utility said.

Converting the last remaining boiler from coal to wood would reduce emissions of carbon dioxide, nitrogen oxides, sulfur dioxides and particulate matter, according to Xcel.

The Bay Front plant is expected to use tree harvest leftovers, such as treetops, logging slash and damaged or underused trees, Xcel said.

Leslie Brooks Suzukamo can be reached at 651-228-5475.

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