If completed the building would become the world's tallest structure eclipsing the CN communications tower in Toronto which stands at 553.33m.

"The success of the pre-feasibility study signals the go-ahead towards full commerciality and is one of the most significant decisions in the progress of solar tower technology to date," company chief executive Roger Davey said.

"The economic benefits illustrated in the study's financial modelling are adequate to ensure the commerciality of solar tower development taking into account revenue expected from energy generation, associated derivatives and potential revenue from naming rights."

The project features the 1000m structure, which would be visible from 100 kilometres away, with a transparent solar collector at its base that would measure seven km in diameter.

It works by heating air at the base - which is about 30 degrees celsius hotter than air at the top of the tower and the resulting convection force creates a powerful updraft which generates clean power, enough to service 200,000 houses. Equivalent to a 200 megawatt power station.

This energy output will represent an annual saving of more than 750,000 tonnes of greenhouse CO2 gases from entering the environment.