In its application to the Department of the Environment, QER said the next stage plant would produce diesel, and other fuel products and by-products within its existing mining licence 80003.
The company also wanted approval to extend its associated open cut mining activities of the Stuart oil shale deposit, with the total disturbed footprint expected to total 230 hectares of the 527ha licence area.
QER's demonstration plant on the site has previously produced 37-40 barrels per day of synthetic crude oil and high quality transport fuels over two years.
While the targeted production rate of its proposed commercial scale plant was not revealed in the federal application, on its website QER said it aimed to produce 8000 barrel per day of transport fuel from a full scale facility.
The plant is located in an industrial precinct about 15km northwest of Gladstone.
The referral was made to meet the requirements of the Environment Protection and Biodiversity Conservation Act.
