The annoying stable flies - caused by the 40 million chickens grown around Perth each year - cause health problems for livestock and humans. Leaching of the high levels of nutrients such as ammonia from the droppings into the groundwater table is also a major concern.
The proposed $30 million plant would be in operation in early 2004 and has a capacity of 10MW.
The proponents are Pacific Hydro, power generation company Blair Fox and the WA Poultry Industry.
Blair Fox managing director, Matthew Rosser, said the venture was a standard biomass power station. "It is a bit like the Queensland sugar mill structure," he said.
He said he had been working on the project since 1997 and had a background in the renewable energy sector, mainly wind power generation.
He would not be drawn on the equities of the proponents but said the development would be project financed.
The power generated by the plant would be used by the growers themselves instead of buying through Western Power.