Environment Agency Wales has announced that it is likely to grant a permit change to allow Vale Europe Ltd to operate a power plant that uses waste to generate electricity.
The company currently operates a nickel refinery in Clydach and wants to expand to operate a "pyrolysis" plant at the same location, which would produce gas from waste to fuel engines and generate electricity.
The decision follows an in-depth analysis which shows that the company has the necessary measures in place to operate the proposed facility without harming local people or the environment.
As part of the Agency's analysis, local people, businesses and a number of professional bodies, were consulted with before the Agency reached their decision.
A second round of consultation will now begin to allow people the opportunity to highlight any new issues that have not been addressed as part of the decision making process.
Steve Brown, from Environment Agency Wales said:
"Following a rigorous assessment we have drafted a revised permit for the site which will require the company to continue to conform to the highest environmental standards.
"This further consultation stage gives everybody the chance to view the permit, discuss how we have reached our decision, and bring any new issues to light.
"We will not allow a change to the permit until we are satisfied that we have addressed all concerns and that the company can operate safely without impacting on the local environment or local people."
Copies of the draft permit are available to view online at:
The application is also available to view on the public register at the Agency's offices in Maes Newydd, Llandarcy, Neath Port Talbot SA10 6JQ.
People can inspect the public register between the hours of 9.30am and 4.30pm Monday to Friday (except on Bank Holidays).
A copy is also available at the City and County of Swansea Civic Centre, Oystermouth Road, Swansea, SA1 3SN.
Any comments should be made in writing by Tuesday 04 December 2012 to The Environment Agency, Permitting and Support Centre, Quadrant 2, 99 Parkway Avenue, Parkway Business Park, Sheffield, S9 4WF or by emailing email@example.com.