Michael and Roslyn Jeffree, of Bundanoon-based Independent Mortuary Services, have applied to Wollongong City Council to change the use of 108 Auburn St from a vehicle repair centre to a crematorium.

The single-storey industrial building is the former home of Drury's Accident Repair Centre.

Mr Jeffree, originally from Stanwell Park, said he had always wanted to expand his business into the Illawarra.

"We like this particular building because it meets all the council's regulations," he said.

"We needed something in the light industrial or industrial zoning, which this has, and also the fact that it is a free-standing building means we can put our own personal touches on it."

Mr Jeffree said demand for cremations had risen in the past decade, predominantly due to the increasing expense associated with burying the dead.

"A cremation can cost between $600 and $1000 on average, while a burial site [in Wollongong] starts around $3000, plus $1000 for grave digger fees," he said.

"Cremations offer a cheaper alternative for some people, while others just prefer that option."

Mr Jeffree hoped his application would pass the council process without major problems, but admitted other companies had run into trouble setting up such establishments across Sydney.

The Land and Environment Court last year upheld a Blue Mountains council decision to reject an application for a crematorium on the Great Western Hwy at Springwood after community concerns over traffic, parking, noise and health implications.

Mr Jeffree said the possibility of impact on the environment was an often-raised issue, residents fearing there would be "discharge" from the cremation process.

"I think that's ignorance of the process a lot of the time," he said. "Our cremator will emit no odour, very little noise, and there's no way anything can escape from it.

"The only thing that people would be able to see is a small heat haze from the chimney."

Plans for the crematorium are on public exhibition until May 25.

Visit the planning and development section of the council's website to view the documents.