DTE Energy Services is acquiring stakes in the 49.5MW Mt. Poso Cogeneration Co. coal-fired power plant California to convert the facility to 100% biomass fuel.

The conversion is expected to be complete in 2012. The Mt. Poso plant currently uses a blend of coke, waste tires and coal to generate energy but DTE plans to convert the facility to use urban wood waste, tree trimmings and agricultural residues.

PG&E has signed a long term power purchase agreement, looking to acquire the 44 MW of power expected to be generated when it converts to a biomass facility. A similar biomass conversion is underway in Stockton, California