The multi-million-pound project will help ensure the future efficacy of Valero’s Pembroke refinery and safeguard 1,000 jobs.
The massive nine-figure investment will create a combined heat and power generation unit which will provide power to the refinery itself.
“The decision to approve our CHP unit plans by Valero management caps a year of tremendous effort to obtain approval for this major investment in the Welsh economy.
“We appreciate the Welsh Government’s support and planning permission, it is a testament to our collaborative approach with the Welsh Government, regulators, and the public.”
A principal contractor will be appointed and hold an open day for local people to discuss job opportunities with the project.
First Minister Carwyn Jones met Valero while in Washington this week and has welcomed the news, describing it as a vote of confidence in the Pembrokeshire site and the wider Welsh economy.
The First Minister said: “This project is a huge boost to the economy of south west Wales, on a similar scale to transformative projects such the Aston Martin site in St Athan and the Wales International Convention Centre.
“The Welsh Government has been working closely with Valero in supporting this investment, which will allow the company to grow and compete successfully in a global marketplace, ensuring sustainability of employment well
“This is great news for the site’s 1000 plus employees and contractors, and a huge boost to the Welsh economy as we celebrate St David’s Day.”
The CHP cogeneration unit is the first project of its kind to receive planning permission as a Development of National Significance process under the Planning (Wales) Act 2015.
Valero Energy Ltd is a Welsh Government Anchor company located in the Haven Waterway Enterprise Zone.