The project involves installing a solar thermal addition to power Kogan Creek's feedwater system, increasing the station's overall efficiency and generating more than 23 MW of electricity per year.

Ausra and the State Government signed an agreement earlier this year and have now applied to the Federal Government for around $200 million of funding.

Climate Change and Sustainability Minister Kate Jones said Ausra will use a solar collector and steam generation process to power Kogan Creek’s feedwater system, which would make it the largest demonstration of this type of technology in the world.

The technology was conceived at Sydney University in the 1990s and there are pilot plants at Liddell Power Station in New South Wales and Kimberlina in California.

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Ausra CEO Bob Matthews said "The solar thermal booster project is shovel ready, subject to Government funding, and could be generating zero emission solar power within a year.”

CS Energy Chief Executive David Brown said the project could augment the conventional feedwater process at Kogan Creek Power Station, which currently uses steam from the turbine to preheat water entering the boiler.

"The solar boost project would use solar technology to preheat the feedwater, meaning the steam we were diverting from the turbine can instead be used to generate extra electricity," Mr Brown said.

Ms Jones said Queensland needed projects like the solar boost proposal if the State is to successfully transition to a low-carbon future.

The Bligh Government released its Queensland Renewable Energy Plan in June this year, which has set a target for 20 per cent of energy to be produced from renewable sources by 2020.