The Department of Energy and Climate Change has granted consent to Anglesey Aluminium Metal Renewables to construct a biomass fuelled power station at Penrhos Works in Holyhead, Anglesey, North Wales.
The plant will generate 299 MW of electricity, enough to power approximately 300,000 homes, which is the equivalent to around a quarter of the homes in Wales.
The plant is expected to employ up to 600 people during construction with around 100 full-time personnel when operational.
The operator is expected to source fuel from both imported and local sources, with imports coming in through the Port of Holyhead.
Charles Hendry, Minister of State for Energy, said: "We want a balanced energy portfolio and we want biomass to play a key role in this.
"Biomass power stations such as this one in Anglesey will provide us a reliable, secure, flexible and renewable source of power. I am especially pleased that the plant offers the prospect of so many high-quality jobs in Anglesey."