Energy minister Lord Bourne has granted planning consent for US-based Halite Energy to store 600 million cubic m of gas in underground salt caverns at Preesall, Lancashire.

This project will create up to 300 jobs during the construction phase and up to 40 permanent jobs once it is up and running.

Lord Bourne said: “Investment in new energy infrastructure is essential if we are to keep the lights on and bills down.

“This is a major project that will benefit the local economy by creating jobs and stimulating businesses. Gas is the ‘greenest’ fossil fuel and helps us to lower our carbon emissions, which is important in the UK’s move to a cleaner-energy future.”

Halite Energy chief executive Keith Budinger said: “This decision is the culmination of more than four years of detailed work to demonstrate that this facility can be built and operated safely.

“We look forward to working with the local community to ensure that the people and businesses of Lancashire benefit from our project.”

The company said it will now carry out detailed pre-construction planning and design, with a view to starting construction in the next 12 months.