Llangefni-based Egni Biomass is the third organisation to express an interest in the controversial Rhosgoch site.

The former oil terminal could become a gas-fired station

If approved, the power station would create 1,500 jobs on the island.

Last week, the Government rejected plans by American company Burlington Resources to bring gas ashore at Amlwch and pipe it to the former oil terminal site at Rhosgoch.

The island's largest employer, Anglesey Aluminium, said it will need a new source of power to guarantee its future.

If it decides to re-locate elsewhere 600 jobs will go with it.

The metals firm currently uses electricity from the island's Wylfa nuclear station but that is due to close in 2004.

Energy park plan

Egni said its application is to eventually develop an energy park at the controversial site on Anglesey.

It will produce gas from burning wood and other biomass materials as well as using conventional natural gas.

The company said its application is very much targetted at renewable sources of energy.

Egni said the plan would be in three phases - the first would involve the erection of wind turbines and the processing of slurry and agricultural waste. Crops grown on site would be burnt for fuel.

The second phase would involve building a biogas and energy efficient gas fuel power plant.

Cheaper electricity

The final phase would be an energy park providing cheaper electricity and gas to commercial users.

There is currently a moratorium on gas-fired power stations but a development at Baglan Energy Park, near Port Talbot, was recently given the go-ahead despite this.

Egni Biomass is one of two firms with bids still being considered by the DTi to develop the site.