Drax, which generates 5% of the UK’s power, says it plans to capture more carbon than it produces by 2030.
The firm’s power plant in North Yorkshire, is largely powered by renewable fuel, such as wood pellets.
Drax, which is the UK’s largest power station, converted four of its units to burn wood, as the country seeks to end its dependence on fossil fuels.
The firm said it plans to cut emissions in two ways. First, the sustainably farmed trees that provide its wood pellets absorb carbon emissions as they grow.
The second takes place at the power plant site as carbon-capture technology traps the emissions created by burning the wood.
At present, a pilot project at the site captures a tonne of carbon each day.
But Drax said it hopes to install the system at two of its units by the end of the next decade, removing eight million tonnes of carbon dioxide from the atmosphere each year.