Recycled timber from construction and demolition sites is to be used to fuel a multi-million dollar food farm in Victoria.

Under the $320 million initiative, timber will be used to produce heating steam and electricity for up to 60 hectares of hydroponic greenhouses at the Avalon farm, its proponents say.

The Sustainable Farms Australia consortium aims to create 1000 jobs by 2021, and to eventually produce 30,000 tonnes of vegetables a year.

It is a project between HRL Developments Pty Ltd, Mercer Stokes and Fresh Select. Sustainable Farms Australia spokesman Barry Dungey said the farm would make productive use of timber that would have otherwise gone into landfill.

“The hydroponic glasshouse facility will be based on best practice design principles currently in use in a wide range of similar plants within Europe allowing for the production of tonnes of vegetables all year round,” he said on Thursday.

If approved by the state government, construction on the project will begin next year.