The owners of a timber sawmill in South Australia's south-east are considering a bio-energy plant as part of multi-million dollar upgrade.
The sawmill at Tarpeena is set to undergo an upgrade after Timberlink Australia purchased it from Gunns.
Timberlink is investigating whether a bio-energy plant, using wood waste residues, could provide power for the mill and the grid.
The company's chief executive Ian Tyson, says such a plant could cost up to $100 million, but would have long term benefits
"Around the world this is becoming something that is becoming quite a normal part of major sawmilling, major manufacturing assets and is a proven technology," Mr Tyson said.
"We believe once we've done all the ground work on it, that this could be well be a real opportunity for this site and for this community."