Perth forestry group RuralAus says a proposed biomass power plant on Kangaroo Island would create at least 30 new jobs.
The company is hoping to build a 10-megawatt plant that would power its existing sawmill using waste from the facility and provide alternative power sources for the rest of the island.
RuralAus CEO John Ipsen says although plans have stalled slightly, he is hoping it can acquire more financial support to get the project off the ground.
"Eventually we need full commitment and support from [the] state and Federal Government level to make this work," he said.
"If we don't receive that, we will obviously just have to concentrate inside our own fence and control our own destiny in terms of operating the sawmill at a much lesser scale than what we'd like to."
Mr Ipsen says it is hoping to get a grant from the government-run Australian Centre of Renewable Energy (ACRE).
"It's fairly stringent criteria to meet what the processes are to be able to acquire those funds," he said.
"Hopefully in the next couple of weeks we will have feedback from ACRE to see if our project is relevant and its meets selection criteria."