Swedish state-owned energy company Vattenfall is planning to build a powerful electric water boiler which will provide heat for thousands of homes in Amsterdam, Almere and Diemen.

And the project could lead to a controversial biomass plant in Diemen being scaled down, the Volkskrant reported on Monday.

Last year Vattenfall put its biomass project, which was to be the biggest in the Netherlands, on hold until 2022 because of widespread doubts about the sustainability of the wood chip powered plant.

Vattenfall will scale down the planned biomass plant if the government considers including the e-boiler on its list of renewable energy sources, which is not currently the case, the Volkskrant said, without quoting sources.

Vattenfall itself says the permits and subsidies for the plant have now been finalised and that it should be completed in 2024.

‘We are looking with the Dutch goverment about how the positive contribution the electric boiler will make to sustainability regulations can be recognised,’ the company said in a statement.