Perth-based forestry group, RuralAus Investments, has kicked off a study to determine the viability of constructing a $30 million biomass power station fuelled by plantation timber residue on Kangaroo Island.
RuralAus said it would spend $374,000 to conduct a full feasibility study on a 10 megawatt renewable power station on Kangaroo Island.
The company owns and manages 5,000 hectares of timber plantations on the island, in addition to saw milling and processing facilities.
Chief executive John Ipsen said the station represented a significant growth opportunity for RuralAus.
"We have a real opportunity to make a substantial impact on Kangaroo Island," Mr Ipsen said.
"We have ready access to an excellent source of renewable energy, which can provide a clean and relatively low cost power solution for the island.
The plant would take approximately 18 months to plan and construct, at a cost of around $30 million.
Mr Ipsen said it would create a lasting economic impact on the Kangaroo Island economy.
"It allows for RuralAus to add a consistent supply to the energy network especially in times of peak use." Mr Ipsen said.
"It also allows for other industries to either expand or be created as a result of a consistent supply of 'base load' clean energy
"We believe this study reinforces the significance of this project and we are excited about the transformational possibilities for the company."
