If the £5m scheme wins approval from West Sussex County Council, it will open a new era in farm diversification locally.
The plant will have enough power for between 18,000 and 22,000 homes will be produced, with the great majority going to the grid.
Langmead Farms Ltd wants to establish the project, using technology known as anaerobic digestion, next to an existing green composting facility at Runcton.
A company spokesman said the type of plant proposed was commonly found in Germany, the Low Countries and Denmark, where there were many thousands of them in operation, making a big contribution to energy requirements and disposing of agricultural trimmings.
The spokesman added: 'We're very excited by this. It's a great opportunity for Chichester to put itself on the map in terms of green energy generation.'
>> Vote in our latest web poll.