The proposed site is in Spring Gully, near Roma in central Queensland. Origin said the proposed plant would be built in two stages of 500MW each.

The plant will draw fuel from Spring Gully’s nearby reserves of coalbed methane (CBM) at a rate of 35 petajoules per 500MW units per annum.

Origin has booked ‘Proved and Probable’ reserves of over 1,000 PJ at the Spring Gully CBM reserve and the nearby Fairfield CBM reserve.

The company plans to reuse wastewater from the gas extraction process as cooling water for the proposed power station.

Origin first made its plans to develop the site in October 2004, and the proposal was granted 'significant project' status by the Queensland Government in December 2004, requiring Origin to develop an Environmental Impact Statement (EIS).

The first stage of the EIS process involved preparing the terms of reference, developed by Origin and approved by the State’s Coordinator-General, with a component of community and stakeholder consultation, defining the criteria against which the project must measure its environmental impact.

A high voltage double circuit overhead electricity transmission line would connect the power station with the national grid.

Origin has indicated that its preferred option involved constructing a 250km line to the Braemar substation near Kogan Creek in a separate project.

Origin Energy spokesman Tony Wood said the EIS was developed by Origin and specialist consultants after extensive consultation with the region’s community.

“The input and assistance we have received from the local community and government has been invaluable,” Wood said.

Bungil Shire mayor Robert Loughnan has already indicated the council would look upon the project favourably.

He told ABC News Radio that Origin had a good track record in the area.

"Origin has gone to a lot of lengths to try and make sure that this isn't going to affect many of the neighbours," he said.

"They've also gone to great lengths to be a good corporate citizen. They've actually paid Bungil Shire in the vicinity of $1.4 million to rebuild the access road."

Queensland state development and innovation minister Tony McGrady said the Spring Gully power plant would meet high environmental management standards.

"In addition to low greenhouse gas emissions, this project has the advantage of drawing its cooling water from the wastewater produced from the extraction of coal seam gas,” McGrady said.

“This would significantly reduce the site area the gas project requires for evaporation ponds plus remove the need for new sources of cooling water."

The Spring Gully EIS will be released this Saturday, November 12, inviting public comment until December 9, 2005.