SOUTHERN Oil is behind an innovative plan to take on the Aldoga renewable hub.
The company, which runs the Northern Oil Advanced Biofuels Pilot Plant, has put in an expression of interest to develop the 1248 hectare sit - in conjunction with a solar company.
"Part of the problem with solar is when the sun isn't shining, it's not producing power," managing director Tim Rose said.
"The Finkel Review federally said (renewable energy) is all well and good, but it needs to be reliable."
Mr Rose said the solar company submitted a proposal as they were interested in working with Southern Oil, which produces renewable biofuels.
"If you can put a diesel generator on site for when the sun isn't shining and you can put renewable fuel through it, then you're producing renewable power, then all of a sudden your solar plant becomes a 24/7 power supply," he said.
The State Government revealed in parliament last week that five companies had been shortlisted to develop the renewable hub at Aldoga, on the way to Mt Larcom.
Mr Rose said he was unaware at the moment if their idea was one of those in the running.
But he said he believed their proposal was considered a strong contender.
The Northern Oil plant was officially opened in June this year.
The pilot plant aims to produce 1 million litres of fuel for various uses.
At the same site is the Northern Oil Advanced Biofuels Laboratory,hich is a dedicated biocrude and biodiesel testing facility.
The project has the potential to put 450MW, or enough energy to power 130,000 homes, into the grid as the site is next to the Larcom Creek substation.
Natural Resources and Mines Minister Anthony Lynham said construction design and engineering of the renewable hub should begin in 2018.