The wood-burning plant is expected to generate up to 120MW of renewable electricity and up to 200MWth of renewable heat.
The plant will bring up to 500 jobs to the area during construction.
Developer Forth Energy applied to the Scottish government for consent to construct and operate the Port of Grangemouth biomass renewable energy plant in September 2010, and supplied supplementary environmental information in January 2012. A public local inquiry was held in May 2012, following which consent was recommended, subject to conditions.
Scotland’s energy minister Fergus Ewing said: “In consenting this application I have put in place a series of conditions to protect local residents from inconvenience, safeguard the appearance of the area, and protect the environment and air quality. The conditions to the consent also ensure that the fuel used in the biomass is from sustainable and responsible sources.”