After nearly five decades as one of western Europe's most polluting power plants, Drax power plant in Yorkshire will stop burning coal in March 2021.
The move comes well before the Government deadline to ban coal-fired electricity by 2025.
Will Gardiner, chief executive of Drax, commented: "Ending the use of coal at Drax is a landmark in our continued efforts to transform the business and become a world-leading carbon negative company by 2030. Drax's journey away from coal began some years ago and I’m proud to say we’re going to finish the job well ahead of the Government's 2025 deadline."
The power station will later close its two coal units in September 2022 resulting in a loss of 230 jobs.
Its decision came after discussions with the national grid and ambitions to become a carbon negative company by 2030.
Drax has already reduced coal generation, which was 3% in 2019, down from 30% in 2016.
Coal-free electricity generation in the UK has improved dramatically, with the country's power networks going more than a fortnight without burning any coal.
The company also use renewable biomass fuel for power generation. Mr Gardiner commented: "By using sustainable biomass we have not only continued generating the secure power millions of homes and businesses rely on, we have also played a significant role in enabling the UK's power system to decarbonise faster than any other in the world."