According to the Daily Post, Mere Environmental has opted to base its UK distribution operation on the island with biomass fuel sourced internationally being delivered by sea to nearby Holyhead.
50 jobs will be created in the first stage which will increase to 150 once the company starts to grow trees and produce fuel on the island itself.
Founder and chief executive Mark Hogg said: “The process will see part processed wood being shipped to Anglesey for the final stages in production of power station fuel.
“With the location of the port and the onward distribution network available on the island Anglesey ticks all the boxes.
“Six sites were considered for the site around the UK but the Renewable Island policy being pushed by the Local Authority makes the environment perfect.”