The Markinch biomass plant is under investigation after Fife residents reported thick dust collecting on their house and car windows.
Sepa staff have already tested the dust and found it contains potentially harmful sawdust.
The environment regulator has not yet confirmed the dust came from the biomass plant near Glenrothes.
But a spokeswoman said they found evidence of “non compliance” during a visit to the site on August 5.
Sepa staff made recommendations to “reduce dust generation” during the visit.
Breathing in sawdust can cause serious health conditions, including asthma.
Markinch resident worried air pollution linked to her tinnitus
Susan Glover, 70, lives a short distance away from the site. She is a long-term critic of the plant due to noise and air pollution.
She said the thick dust had regularly built up on the windows of her home, alarming her and many other members of the local community, who have also been battling with the dust.
“I really want people to be aware that the pollution in the atmosphere is killing us,” she said.
The retired English teacher is afraid the pollution could lead to people in the community suffering “breathing difficulties” in 10 years’ time.
Recent studies have linked hearing impairment to air pollution.
Susan said she had recently developed tinnitus and feared her condition could be linked to air pollution from the site.
Tinnitus is noise in the ears that is not caused by the outside world.
“Since June I’ve developed tinnitus and I’ve read loosely that it can be connected to pollution,” she said.
“There’s no substantiated scientific evidence but when one breathes in it can also go in the ear canal.
“It can be distressing.”
Biggest biomass plant of its type in the UK
Biomass is a form of energy generation that creates heat and power through burning a mixture of wood waste and virgin wood.
There is an ongoing debate about whether it should be considered a source of renewable power.
The Markinch plant produces electricity for around 100,000 homes and operates around the clock, every day of the week.
Sepa investigation still ‘ongoing’
A Sepa spokesperson said they had received a number of dust complaints from residents near the RWE Markinch Biomass Plant.
She added: “In response, Sepa has taken samples from the area which confirmed the material contained wood dust.
Evidence of non-compliance was found.”
“However, further analysis of the samples is needed to confirm the source and our investigation is ongoing.
“A site inspection was also carried out at RWE Markinch and actions required where evidence of non-compliance was found.
“Recommendations were also made to reduce dust generation.”
Dust escaped due to ‘long hot dry periods’
An RWE spokeswoman said due to recent “long hot dry periods there has been some localised dust associated with incoming fuel deliveries”.
“To mitigate this issue, strict dust management measures are implemented on site at all times these include dust extraction systems, atomised water and fine mist sprays along with regular monitoring and cleaning of the site.”
The plant remained a “proud member of the local community,” she added.
“The station must comply with its Pollution Prevention and Control (PPC) permit, issued by Sepa.
“The permit includes strict limits regarding emissions and dust.
“Particulate emissions from the plant are continuously monitored, and are typically up to 20 times lower than the daily average limit in the PPC permit.”