Simec Atlantis Energy PLC (LON:SAE) said the Welsh Government has decided to "call in" the group's planning application for its Uskmouth waste-to-energy conversion project.
The decision means the Welsh Government, rather than local planning authority Newport City Council, will make a decision on the planning application for the construction of new silos, conveyors and a rail upgrade top handle the fuel for the plant.
The application is not for the conversion of the plant itself.
Simec Atlantis said it will work closely with the Welsh Government to understand the next steps.
Before being called in, the planning officer for Newport City Council had recommended approval of planning permission, subject to certain conditions, said the statement.
Simec Atlantis added it will provide a further update if this decision impacts the expected project delivery timeline.