The state opposition has called for $4 million from the royalties for regions fund to be committed to the $171 million Ravensthorpe biomass energy project, which could create hundreds of jobs in the region.
Shadow Minister for Regional Development Alannah MacTiernan said the project was now under consideration for federal funding under a renewable energy program following an application from Biotek Resources Pty Ltd.
"A $4million injection of Royalty for Regions funds would help move the project forward and enhance the chances of the project attracting federal funds," she said.
Proponents for the project have sought $57 million in federal government assistance.
The project would use grain stubble and oil mallee to fuel a 12 megawatt power station which Ms MacTiernan said will directly and indirectly create hundreds of jobs.
"The biomass project would facilitate the opening of several mines in the area, particularly the proposed lithium mine which alone could employ up to 100 people," Ms MacTiernan said.
"This would go a long way to addressing the employment problems caused by the Ravensthorpe Nickel Mine closure."
Premier Colin Barnett told reporters today that he thought the project was a good idea however said the government does not have a policy of funding private enterprises.
"If we'll assist, we might assist with land, we might facilitate, we might look at buying electricity, but we basically do not have a policy of funding private companies," Mr Barnett said.
