Initially, WA Biomass has secured an approval for the proposal to construct and operate the 40MW wood-fired plant in the south of Manjimup in 2009.
Construction on the biomass power plant was supposed to commence within five years.
However, the company has requested for an extension through March 2019, reports abc.net.au.
Under the Environmental Protection Act, Western Australia Environment minister Albert Jacob has to consult with other WA ministers before making a final decision.