A ground-breaking ceremony marking the start of construction on a new £127 million project at Pembroke Refinery has been held today (Tuesday).

First Minister Carwyn Jones joined Valero executives and other dignitaries at the ceremony to symbolically cut the first turf for Valero’s new Combined Heat and Power (CHP) Cogeneration Unit, which is the first project to receive planning permission as a Development of National Significance process under the Planning (Wales) Act 2015.

Located within the boundaries of the Haven Waterway Enterprise Zone and the Swansea Bay City Deal region, the 45 megawatt project will provide power to the refinery, as well as supplement the refinery’s steam demand, and will help Valero to achieve improved energy and cost efficiencies to ensure Pembroke Refinery continues to be successful in the competitive global market.

Following the ceremony, the First Minister addressed members of the refinery workforce and invited guests from the Pembrokeshire energy sector, local councillors and members of the Haven Waterway Enterprise Zone and Swansea Bay City Deal at a celebratory lunch.

First Minister of Wales, Carwyn Jones, said: “This announcement is a major boost to the economy of south-west Wales which will allow the company to grow and compete successfully in a global marketplace as we face leaving the European Union.

"We enjoy an excellent relationship with one of our anchor companies, that continues to show a commitment to the Haven Waterway Enterprise Zone. 

“With the industry facing numerous challenges, the company keeps investing which is a true testament to the workforce and also the workforce in Pembrokeshire.”

Ed Tomp, Valero Vice President and General Manager, commented: “Today marks another major milestone in this project, which is a significant investment by Valero in Pembroke Refinery as well as a demonstration of the company’s commitment to the Welsh economy. 

“We are delighted to have been able to welcome all our guests, especially the First Minister, and we are extremely grateful for the deep and widespread support we have received throughout the course of the project.”

The FM added that it would not be possible to know if Brexit will negatively affect Valero and Pembrokeshire until more details are revealed.

He said: “It’s difficult to know whether Valero will be negatively affected by Brexit. 

“There will be some companies that will be affected more than others. 

"But what we have here is a company that knows there is uncertainty in the future with Brexit but has made the investment anyway. 

"That shows they view Pembrokeshire as an important base for them.”

Mr Jones also said that many companies had expressed concerns about the future, but that the effects of Brexit could be minimised if we avoid “crashing out” of the EU.

Ed Tomp echoed the First Minister’s feelings that there needed to be more details about Brexit, he said: “Valero is like most other companies doing business in the UK and EU and that is we are always anxious to hear “what is Brexit?”, “what will it mean to our business?” 

"And so, we’ve certainly made plans to deal with any eventuality.”