Formal consent was given to the Heron Renewable Energy Plant at South Killingholme near Immingham and the Ouse Renewable Energy Plant at Selby. Both are 299MW plants, each producing enough electricity for more than 500,000 homes.
Both developments will employ an average of around 600 people on site during the three-year construction period, with a maximum of 850.
Energy minister Charles Hendry said: "It is vital that we get investment in new power stations up and down the country to ensure secure energy supplies for people’s homes and businesses.
"I am very pleased to give the go-ahead for these two new biomass power stations in Yorkshire and North Lincolnshire. They will not only enhance our security of supply, but provide low-carbon electricity that reduces our carbon dioxide emissions."
Although imported biomass will initially make up much of the fuel source, Drax is keen to develop the use of indigenous biomass fuels where available and the company is encouraging the development of local energy crops and other renewable supplies. Drax is also committed to investigating options for increasing the overall efficiency of the plant through the supply of surplus steam and/or heat to local industry or housing.