London's iconic Battersea Power Station will be transformed from what many consider an eyesore into a cutting-edge sustainable community under a plan unveiled last week.

Real Estate Opportunities (REO), the Irish company that owns the site, said it would turn the derelict former electricity station into a residential, tourist and commercial hub that represented the UK's premier "zero carbon environment".

The £4bn overhaul will include the latest in environmental design, with the construction of a 300m high "eco-dome" and "solar chimney" designed to significantly cut carbon emissions.

Together they will reduce non-renewable energy consumption across the 38-acre site by around 67 per cent compared to a similar sized facility and create the world's largest sun-powered ventilation system.

Rob Tincknell, managing director of REO's development manager, said then plans represented "groundbreaking innovation" that would help enhance London's reputation as one of the world's leading green cities.

According to the plans Battersea will also begin producing power again with the dome covered in solar panels that will turn the sun's rays into heat for water and air that will supply the site's 8 million square feet of homes, offices and hotels.

Meanwhile, up to 3,000 cubic metres or air per second will be sucked up through the chimney and used to ventilate and air-condition the buildings.

REO said it also hoped to include sustainable transport solutions as part of the redevelopment of the 80-year-old station, which is set to begin in 2012 and finish by 2020.