A factory able to convert up to 200 tonnes of plastic per day into fuel is being earmarked for Canberra.
If approved, the $15 million facility in Hume will be one of the largest of its kind in Australia and will be in operation 24 hours a day.
However, residents in surrounding suburbs of Macarthur and Gilmore are voicing concern, saying locals were not consulted over the proposal.
Chris Klootwijk has lived in Macarthur for more than 30 years and said residents will be also be able to smell emissions from the site, with only 170 tonnes out of 200 being able to be converted into fuel.
"There's certainly a lot of pollution that will be coming in between Macarthur and Gilmore," he said.
"It will have an incredible impact. For locals, [the factory] will be all that we will be able to hear."
The closest homes to the site on Couranga Crescent will be 1.3 kilometres away.
Construction is estimated to begin in October should the site be approved, with the ACT government reviewing the proposal.
While Mr Klootwijk said he supports the idea behind the proposal of recycling plastics that would otherwise be consigned to landfill, he said fears of pollution and the noise of trucks entering and exiting the site was worrying many residents.
"There's going to be far higher carbon dioxide pollution than what would happen if the fuel was directly converted from oil," he said.
Many residents were only told of the proposal through a letter box drop in recent weeks, with a community meeting held on August 30.
Resident Russ Morison said for a project of this scale, more community consultation should have happened.
"[The factory] will be right on our doorstep. The consultation should have happened way before the government sold the land," he said.
Foy Group, the company behind the project, have been forced to allay concerns of nearby residents about the project.
In a statement, a spokeswoman for Foy Group said the construction and operation of the facility would be similar to that of the company's site in Berkeley Vale in NSW.
"There have been no environmental concerns incidences and zero complaints from the community regarding the [Berkeley Vale] facility," the spokeswoman said.
"The residential community in NSW is within 700 metres of the Berkeley Vale facility, which is nearly half the distance of the closest residents to the Hume facility."
Figures from the group said the factory would contribute 0.7 per cent of the ACT's total carbon footprint, with the emissions being the same as a single-home wood fire.
It is estimated that 30 jobs will be created if the facility is approved.
The spokeswoman said steps are in place to limit any potential emissions produced from the factory.
"Our emissions at the current site are well below the industry standard," she said.
Submissions from the public on the proposed factory close on September 23.