Sukhinder and Rajbir Singh, founders of the Whisky Exchange, have put in fresh plans to Argyll and Bute Council for the facility near Port Ellen.
Plans for the distillery include space for 16 washbacks and four sets of still pots as well as a sizeable floor malting. It will produce a range of whisky styles, with smaller stills, a mixture of modern and traditional yeasts, longer fermentation times and a separate experimental still.
The site will be built with sustainability in mind, with features such as heat reclamation capabilities, and will also include a visitor centre and education facility, supporting an apprentice programme and other training opportunities in distilling.
Sukhinder Singh said Islay held a special place in his heart; he has visited the island regularly over the past 25 years and estimates he has tried close to 3,000 Islay whisky bottlings.
"From a liquid point of view, we are determined to produce the greatest spirit possible. We want to create something that inspires the people of Islay and our customers and enhances the reputation of Islay as a source of some of the world's greatest whiskies," he said.
"Our hope is that our distillery becomes an integral part of the island community and one of our key priorities is to work collaboratively with the local community to ensure everyone benefits."
Elixir Distillers plans to submit an additional application in March to. build eight houses for distillery staff, and there are further plans to build accommodation elsewhere on the site on land currently known as Torradale Farm.
Following meetings with the Islay Community Council, the company is also planning to launch a charitable fund to which it will contribute annually. A board of trustees, including Islay residents, will decide how the funds are spent. To kickstart the fund Elixir Distillers is donating £1 from every bottle of its 2020 Port Askaig limited-edition release to the fund – a move expected to raise £15,000.