A £60m revamp at Didcot power station to secure the future of the site has been welcomed by community leaders.

Energy firm RWE npower has pledged to spend the money to replace Didcot B's two old gas turbines with more environmentally-friendly equipment.

Coal-fired Didcot A, which opened in 1970, is due to close by 2015 because of new rules on greenhouse gases. Didcot B power station manager Richard Llewellyn said: "Gas power stations like Didcot B have an increasing role to play in generating cleaner power. What we have announced this week is a major investment in cutting-edge technology, which increases efficiency and will save CO2."

The firm said carbon emissions would be cut by 50 tonnes a year. Didcot Town Council leader Capt John Flood said: "The improvements are definitely welcomed in Didcot. It shows the company's commitment to the area and its commitment to reducing carbon emissions."

Didcot B opened in 1998 and is powered by natural gas. Twice as much energy is produced, because the steam by-product can be used again once the gas is burned.

The new turbines, which will take a year to install once work begins in September next year, are designed to burn even less fuel.

The firm's aim is to reduce the amount of CO2 emitted into the atmosphere, blamed for climate change, and lower the cost of electricity.

The investment is one of a number of projects costing a total of £1.7bn by RWE, to reduce CO2 levels by a third from 2000 levels.

The company has signed a deal with French firm Alstom to build an £800m gas-fuelled power station in Pembrokeshire next year.

RWE npower chief executive Andrew Duff said: "The investments will dramatically reduce the intensity of our CO2 emissions and make a vital contribution to meeting the country's energy needs as older coal and nuclear plants begin to close over the next decade."

Neither South Oxfordshire nor the Vale of White Horse district council environmental health departments, which both cover the site, wished to comment until they had seen more details.