Scotia Global Energy said the hybrid power station intended to radically reduce carbon dioxide emissions, which would be built on a 90 hectare (222 acres) Chapelcross site near Annan, could create more than 500 jobs.

The firm has put forward its plans for the facility to the Scottish Government and Dumfries and Galloway Council while Scottish Enterprise and the Nuclear Decommissioning Authority (NDA) have also been briefed on the proposals.

The development would also include a 10,000 sq ft administration building, public exhibition space on the ground floor and flexible office accommodation on the first floor, laboratory space for energy research and a zone for four community energy projects.

A report on the plans stated that the existing electricity grid connection, its proximity to the gas grid and the water abstraction facilities that are on site are an “ideal mix”.

It claims a development company set up to manage the early stages of the project could initially support five jobs.

However, the report said: “As the site matures, the manufacturing supply chain operations could support several hundreds of jobs conceivably exceeding the site’s historical peak of 500 jobs.”

Dumfries and Galloway Council said it was working with Scottish Enterprise and the NDA on the regeneration of the Chapelcross site.

A council spokesman said: “The council, along with Scottish Enterprise and the NDA, are working together to bring forward proposals for the regeneration of the Chapelcross site. The partners recognise that the Chapelcross site represents a major opportunity to attract inward investment and create new jobs which will have a positive impact on the regional economy. The vision for the site is to develop a sustainable, mixed use approach providing opportunities for large and small scale businesses across a range of sectors. It is highly likely that the energy sector will play a prominent role within that mix, with opportunities for research and development, generation, and storage.”

A spokesman for the NDA said they have had one “exploratory meeting” with a representative of Scotia Global Energy.

He added: “The idea for an ‘integrated energy centre’ seems to fit in general terms with the emerging development framework for the Chapelcross site but we would need considerably more details before giving serious consideration to this proposal.”