Dutch electricity company Delta is hoping to get €900m in subsidies to convert a coal-fired power station to wood chips, the Volkskrant reports on Tuesday, quoting economic affairs ministry sources.

The Volkskrant says Delta is planning to ask for the cash from a special ministry fund to subsidise renewable energy sources. Ministry sources told the paper a loophole in the law would allow Delta to claim some €900m.

The total fund is €3bn and campaigners say this would hit the development of alternative energy sources, such as wind and solar.

The coal-fired plant, located in Borssele, is 70% owned by Delta and 30% by Germany’s RWE, via Dutch energy group Essent. However, its future is threatened by a new tax on coal and Delta now wants to convert it to take wood chips from American and eastern European forests.

The cost of the conversion and buying wood means Delta would need €900m over the next 10 years, the Volkskrant says. The fund is being opened for applications on Thursday.