Proposals to construct a Combined Heat and Power (CHP) Cogeneration Unit at Pembroke Refinery have been given approval by Valero Energy Corporation, following the Welsh Government’s decision to grant planning permission for the planned £127 million project.

The 45 megawatt unit proposed by Valero will provide power for the refinery, as well as supplement the refinery’s steam demand, and has been first project of its kind to receive planning permission as a Development of National Significance process under the Planning (Wales) Act 2015.

With the UK refining industry facing numerous challenges, the CHP Unit will help Valero better control future electricity costs and achieve greater energy efficiency, the company said.

These changes will ensure refinery operations run more sustainably and that Pembroke – which is one of the leading employers in south Wales and one of Europe’s largest and most complex refineries – continues to be successful in the competitive global market.

Valero Vice President and Refinery General Manager Ed Tomp sai:, “This decision to approve our CHP Unit plans by Valero caps a year of tremendous effort to obtain approval for this major investment in the Welsh economy.

"The Welsh Government’s decision to approve planning permission for our proposed £127 million project at Pembroke Refinery is a testament to the collaborative approach Valero has taken to work positively with Welsh Government, regulators and the general public.

Mr Tomp added: “This project is at the heart of our plans to maintain the refinery’s long-term viability and help to secure future jobs in the downstream oil sector in Wales.

"Now that final approval has been received from the corporation, we will appoint a principal contractor to begin the construction phase and later this year hold an open day for local people to discuss job opportunities during the project.”