UK Department of Energy and Climate Change has approved planning consent for the South Hook Combined Heat and Power (CHP) plant in Pembrokeshire, Wales, which will have a gross electrical output capacity of 500MW.

Once operational, the facility is expected to supply electricity to the nearby Liquefied Natural Gas Terminal, generating enough power for around 900,000 UK households.

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Application for the development consent was made by Qatar Global Ventures, ExxonMobil Power and Total Gas and Power Business Services. The three firms will work together for construction and operation of the CHP facility.

UK energy secretary Ed Davey said: "In addition to creating hundreds of jobs during the construction phrase, this plant makes an important contribution to reducing carbon emissions in the energy sector and provides flexible generating capacity.

"CHP is a highly efficient means of generating power that can lower costs, increase efficiency and reduce carbon emissions from heating and power generation."

"This plant makes an important contribution to reducing carbon emissions in the energy sector and provides flexible generating capacity."

Wales office minister Baroness Randerson said: "This is very good news for Wales, and for the UK. Investment in new energy infrastructure is essential if we are to keep the lights on and bills and emissions down.

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"Combined Heat and Power is a highly efficient process which has an important role to play in providing us with a variety of energy generation technologies, which will help to secure our energy future.

"I look forward to seeing the plans for the South Hook CHP plant as they develop over the coming months."

Final investment decision for the project is yet to be taken by the owners. Once that is done, construction for the plant is likely to start in 2015 and expected to end by 2018.

Energy