VALERO has today (Monday) announced plans for a massive £100m investment at its Pembroke Refinery and hailed the move as a ‘huge vote of confidence’ in its workforce.

Valero Energy Ltd has submitted plans for a proposed Combined Heat and Power (CHP) Cogeneration Unit at the Rhoscrowther refinery which employs around 550 people and supports hundreds more contractors.

The 45 megawatt unit under review by Valero will provide power to the refinery, as well as supplement the refinery’s steam demand.

With the UK refining industry facing numerous challenges, the project aims to ensure Pembroke Refinery – which is one of the leading employers in south Wales and is one of Europe’s largest and most complex refineries – continues to be successful in the competitive global market.

Ed Tomp, Valero Vice President and General Manager, said: “Valero has today submitted plans to the Planning Inspectorate Wales to build a Cogeneration Unit at Pembroke Refinery.

“This would be a significant investment by Valero in Pembroke, demonstrating a huge vote of confidence in what the workforce has achieved since the company acquired the plant in August 2011.”

Tomp continued: “This project is at the heart of our plans to maintain the refinery’s viability for the long-term and help secure future jobs in the refining sector in Pembrokeshire and West Wales.

“We are at the early stages with this proposal and won’t make a final decision until next year.

"We will continue to keep key stakeholders informed as these plans progress.”

The Valero announcement was warmly welcomed by the Leader of Pembrokeshire County Council, Jamie Adams.

“This follows a couple of years of particularly successful trading by Valero’s Pembroke refinery” said Cllr Adams.

“We see it as a sign of confidence in the plant by the operators. It also reflects well on the staff at the refinery and the local support network of engineering skills based here in Pembrokeshire.

“If the scheme goes ahead, the Combined Heat and Power Cogeneration Unit will be one of the many efforts being made by Valero to make the refinery competitive in a global market which we welcome.”

South Pembrokeshire MP Simon Hart added: “I am really delighted by this news.

"This announcement is a terrific boost for the area and shows that Valero has confidence in the skills and dedication of our workforce.

"Coming so soon after the company took on over 80 people whose jobs were at risk following the collapse of Main Port Engineering, it is another reminder of how vital Valero is to Pembrokeshire”.

Preseli Pembrokeshire MP, Stephen Crabb, added:“The proposed investment at Valero is most welcome and a timely boost for the Pembrokeshire economy.

“An investment of this scale is a big vote of confidence in the quality of the management and workforce of the Pembroke refinery, and shows its importance as an employer in our county.”

Labour Assembly Member Eluned Morgan, said, “Valero is vital to the economy of West Wales and to Wales as a whole.

"This multi-million pound investment is great news. As well as making sure the refinery stays viable for the long-term, it helps secure jobs now and in the future in the refining sector in Pembrokeshire and West Wales.

“Investing in this way also benefits the small businesses and service providers in our wider community who rely on large local employers like Valero”.

Plaid Mid and West Wales Assembly Member Simon Thomas addedd: “These proposals are welcome, particularly if they secure the long-term future of the refinery. The site is large employer for Pembrokeshire. If the scheme gets the go ahead I hope it will help build skills and retain jobs in Pembrokeshire.”

Welsh Government Economy and Infrastructure Secretary, Ken Skates said:

“Today’s news that Valero Pembroke  have submitted a planning application to construct a £100 million energy generating plant at their refinery in Pembroke is significant and encouraging news for Pembrokeshire  and the Haven Enterprise Zone

“Valero is a very important employer  in the area supporting over a thousand  families who rely on the employment and very well paid jobs offered by the refinery.

“Following the closure of the Murco refinery in 2014, Valero is now one of only six strategic refineries in the UK. While at the very early stages of development this move by Valero shows that  industry has the  continued confidence to invest in Wales.”

Pembroke Refinery Facts

• Built in 1964 as a hydroskimmer, with cat-cracking capacity added in 1982

• Acquired by Valero from Chevron in 2011

• Occupies approximately 450 acres of a 1,275-acre site on the southern shore of the Milford Haven Waterway

• Deep-water port and docks with capacity to handle very large ships, without reliance on third-party terminals or pipelines

• Total throughput capacity of 270,000 barrels per day, including 220,000 barrels per day of crude oil, plus 50,000 barrels per day of other feedstocks

• Approximately 10.5 million barrels of storage, about half used for feedstocks • Major national employer in Wales, including about 550 employees and 400 term contractors;

• 50th anniversary of the refinery celebrated in 2014 by a visit from Their Royal Highness The Duke and Duchess of Cambridge