Australia to help fund world's largest solar power plant

CANBERRA, Australia — The Australian government has pledged $95 million in funding for two projects as part of its new strategy to combat global warming, including the construction of the world's largest solar power plant.

The projects are the first to be funded under a $379 million package announced this week to prevent global warming. Australia has been criticized over its refusal to sign the Kyoto Protocol on reducing greenhouse gas emissions.

The government will contribute $57 million to the $319 million project to build a 154 megawatt solar power plant in Victoria state, which will use mirrored panels to concentrate the sun's rays, Treasurer Peter Costello said.

The plant, which is to be built by Melbourne-based Solar Systems Pty Ltd., would begin operations in 2008 and reach full capacity by 2013.

"The project aims to build the biggest photovoltaic project in the world," Costello told Australian Broadcasting Corp. radio.

The government also announced $38 million in funding toward a $274 million project to reduce carbon emissions from an existing coal-fired power house in Victoria. The project aims to reduce pollution in part by capturing and storing emissions from the burning coal.

"This will make a major contribution to emission reduction in Australia and it just shows practical, considered, financially viable, workable technologies which will help us on our way to reduce global warming," Costello said.

Environmental groups and opposition lawmakers have urged the government to do more to address Australia's reputation as the world's worst greenhouse gas polluter per capita. Greenpeace spokesman Danny Kennedy suspected the announcements could be a strategy to neutralize concerns about climate change ahead of elections next year.

"If the federal government's strategy is to lay out a series of announcements from now to the election, it is a thinly disguised attempt to avoid the real action that is needed — moving Australia away from polluting coal," he said.

The Australian Conservation Foundation said the solar power plant would be a small step toward reducing greenhouse gas emissions.