Up to 15 food-related jobs could be created within easy travelling distance of Brigg.
A planning application has been submitted to West Lindsey District Council seeking approval for the construction of a drying shed for food processing.
This facility at Manor Farm, Brigg Road, Clixby (1km from Grasby) will utilise waste heat from an anaerobic digestion plant.
Information supplied to the council in support of the application says the building will be used to dry fish for human consumption.
The fish - delivered to the site in sealed plastic containers - will be dried until it is only 20% of its original weight.
"The final product will be transferred to Grimsby once a week for distribution," the report explains.
The proposal will see the creation of up to 15 full-time and part-time jobs in the area.
West Lindsey planners are now considering this application.
Clixby is a hamlet on the A1084 between Brigg and Caistor.