Local residents are rallying against a $120m energy plant proposed to be built near the Mount Gambier Airport.

Altus Renewables is proposing to convert wood-based waste into densified wood pellets, which can be combusted to generate electricity and heat for domestic and industrial applications.

Altus aims to operate the facility around the clock, producing up to 300,000 tonnes of white wood pellets per annum, and believes it will employ 30 full-time equivalent jobs and 81 contractor jobs.

The proposed feedstock for the facility would be a combination of softwood green sawdust and wood chips, as well as some hardwood chips, which Altus says are intended to be sourced locally.

However the proposal has been met with staunch opposition from local residents, who have banded together to oppose the project.

Group spokesperson Kristy Bruhn said residents had met on the site of the proposed pellet mill.

“We residents have very real concerns that emissions from the mill will be released over the 17 nearby dwellings,” she said.

“Neighbouring residents rely on rainwater as there is no town water connection and are concerned about the emissions affecting their drinking water, which is collected off roofs, plus there will also be noise pollution in our rural area.”

Ms Bruhn also said there were serious concerns regarding increased traffic in the area.

“We are worried about the traffic flow on the Riddoch Highway as according to the proposal there will be a B Double turning in to the site every six minutes for 16 hours a day,” she said.

“There is also the fire risk these mills pose and a predicted devaluation of surrounding land.

“And we are also worried about the impact the emissions and lighting will have on the nearby airport.”

Altus Renewables has been contacted for comment.