Phil Thompson never gave up hope that one day he'd be able to combine the business he loves, with the outback town he grew up in.  

The Bidjara/Kara Kara man and his partner Cherie Thompson, a Weilwan woman, run a native oils business in Dubbo, NSW.

But they see a new regional manufacturing hub in Barcaldine, Queensland, powered by solar and wind-based energy as the next evolution of their operation.

"There's a tree and leaf that we use during ceremony all around Barcaldine," Mr Thompson said.

"That was a dream of mine to come back, if we could produce it locally in Barcaldine and export that story and the product all around the world, then that's the exciting part for us."

Their business will be one of at least 10 in the Barcaldine Renewable Energy Zone (BREZ), which has been described as Australia's first regional zero emission business development by its creators: the Barcaldine Regional Council, the Remote Area Planning and Development Board (RAPAD), and Sunshot Industries.

After more than five years of planning, a recent injection of $7 million in funding from the state budget, and $1 million from the Barcaldine Regional Council, means the construction of core infrastructure like roads, water and sewerage is ready to start.

Sunshot Industries estimates the hub will create 500 direct ongoing jobs in protected horticulture, waste energy, tyre recycling, hydrogen, urea production and cosmetics.

It's expected the first businesses will be established at the precinct by the end of the year.

Central to the sustainable vision of the BREZ is a symbiotic relationship between enterprises in the precinct, where one business's waste product is another's input.

Mr Thompson said their leftover woodchips had already been combined with high-grade waste plastic to manufacture prototype building panels.

"The other opportunity is to use that bio resource in some of the other operations where they need this woodchip to produce energy, and offload that to those guys as well, whether it's through a biochar mechanism, or a whole range of energy production."

Millions of dollars have been spent on renewable energy projects in the outback, including several that have not lived up to expectations.

Barcaldine mayor Sean Dillon said the "transformational" precinct would be different.

"None of the businesses involved are start-up businesses, they're all businesses that [are] operating a version of their business somewhere else," Cr Dillon said.

"They're bringing a tried and tested model to a location where there's cheap power, and behind labour costs, one of the chief input costs for all businesses, especially manufacturing and food production in Australia is energy costs.

"[This] also positions the Barcaldine region to capitalise on new industries resultant and dependant on green energy and low emission environments."