It will 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”.