Maria’s Farm Veggies chief executive Cor Disselkoen said the project would grow tomatoes, capsicum, and cucumbers in a 16-hectare glasshouse on Cabbage Tree Road.

The glasshouse project, which is yet to receive council approval, is expected to be completed by early 2013.

It would initially generate up to 125 jobs and up to 200 if expanded.

‘‘Having a local supply of gas is attractive for a business and we look forward to a strong relationship with Dart Energy bringing sustainable gas and agricultural solutions to fruition,’’ Mr Disselkoen said.

It will also feature a water storage and treatment plant as well as carbon dioxide sequestration technology.

The company has developed similar projects in Europe.

‘‘It’s called coal seam gas in Australia, but in Europe it’s known as natural gas; we have been solely relying on gas for the past 40 to 50 years,’’ he said. ‘‘They [Dart Energy] are not fracking or using chemicals, so it was an easy thing for us to get involved with.’’

Dart Energy’s activities have been strongly opposed by some community groups concerned about the potential impact of coal seam gas drilling on the environment, in particular ground water.

Fullerton Cove Action Group spokeswoman Sue Walker said she did not want to comment on the Dart Energy and Maria’s Farm Veggies project.

Dart Energy Australia chief executive Robbert de Weijer said the agreement showed coal seam gas development could co-exist with alternative productive land uses such as agriculture.