If built, the plant would be capable of generating 2.7MW of electricity a year, which would be sent to the National Grid at Redhill and could power about 5,000 local homes.
Last years Stern Report emphasised the role of biomass plants in tackling climate change because they burn wood products in a way that is carbon neutral.
Ecos plant would be fuelled by the recycled wood which is already delivered to the Parley site to be chipped. Additional fuel would be provided by willow which Eco plans to grow. The company also plans to grow willow to enhance the fuel supply.
Managing director Trelawney Dampney (pictured)said that since the companys plans went out for local consultation last year the reaction has been overwhelmingly positive.
Groups such as Friends of the Earth back biomass plants because they are green-friendly and provide clean power, he said.
Currently there is only one other biomass plant operating in the UK, although a number are in the pipeline, and they have been operating in Europe for five years. They make environmental and economic sense.
The planning application has been lodged with Dorset County Council. If permission is granted, the biomass plant could begin operating in 2009.