Silver Hydro has submitted the proposals for the old Caddonfoot Primary at Clovenfords.
Pupils moved out of the school nearly three years ago and into a brand new building.
It is now hoped the old property could be turned into what developers describe as a "sustainable water-based energy research facility".
The proposal would see water engines and their electronic components assembled and tested in what was the assembly/dining area.
Developers said the site of the building - next to the Caddon Water which flows into the River Tweed - would be ideal for their project.
Silver Hydro said it had made a successful bid to purchase the building, subject to planning approval.
It added that externally-visible alterations would be minimal.
Plans have been lodged to create a hydro energy research centre at a former school building in the Borders.