TRUENERGY will spend $1.8 billion to build a gas-fired power station in Gladstone as part of a $3.6 billion investment in Queensland.
A 1000-man workforce will be needed when construction begins on the Aldoga site in early 2013.
The power station will be powered with gas from Queensland's south-west gas fields meaning it will emit up to 50% less carbon dioxide than a coal-fired station.
Queensland Premier Anna Bligh said TRUenergy, which will build another power station near Ipswich at the same time, would increase the state's overall electricity generation capacity by 20%.
"The stations will be where we forecast our highest population growth in the Western Corridor and our greatest industrial growth in Gladstone at the centre of our new LNG exporting industry," Ms Bligh said.
"These stations will plug us all in to a future that is brighter than anything in our history and investments like this from TRUenergy are just the start of what is on the horizon for our state."
TRUenergy has begun the development applications.
The Aldoga power station, located in the 26,000ha Gladstone State Development Area, will be developed in stages with the initial units sized at about 500MW. It will have a total capacity of up to 1500MW depending on energy demands.