Mr Palmer's proposal is for a 700 MW "high efficiency, low emission ultra-supercritical power station" to be built on his Waratah Coal mining lease, which would provide coal directly to the generator.

"The Galilee Power Station will be developed as a contingent component of the overall project, providing the power needs for the mine operations, coal transportation and port operations, ready for export coal to Gladstone and future power needs for our proposed North Galilee coal mine development,'' he said in a statement.

Mr Palmer proposed a very similar project in 2009 for Waratah Coal's Galilee operation, and the project was granted Significant Project status by the state's coordinator-general.

However, the status was allowed to lapse six years later when the proposed generator never eventuated.

Waratah Coal, a subsidiary of Mr Palmer's umbrella company Mineralogy, is seeking an amendment to its draft Environmental Authority to allow the newly- proposed power station.

A spokesperson from Mines Minister Anthony Lynham's office said the department had yet to receive any application from Mr Palmer's companies related to the proposal.

"The government will consider the details of Mr Palmer's proposal when they are formally lodged with the relevant departments," the spokesperson said in a statement.

AAP