WorleyParsons Studies Solar Thermal Power Project in Australia

By Angela Macdonald-Smith

Aug. 12 (Bloomberg) -- WorleyParsons Ltd., Australia's biggest engineering company, is studying construction of what would be the world's biggest plant to produce power from the sun's heat, tapping incentives for renewable energy generation.

The study, for a 250-megawatt project, is backed by companies including BHP Billiton Ltd., Rio Tinto Group and Woodside Petroleum Ltd., the Sydney-based company said today in a presentation sent to the Australian stock exchange. Solar thermal technology uses a metal parabolic trough to capture energy from the sun for conversion into electricity.

Australia's government targets renewable sources supplying 20 percent of the nation's electricity by 2020 as it seeks to reduce greenhouse gases blamed for global warming. Plants using the technology could provide half of Australia's target for renewable energy use, Worley Parsons said.

Australia has ``ideal conditions'' for solar thermal power generation, the company said in the presentation. Chief Financial Officer David Housego wasn't available to comment. The company will hold a teleconference on the project at midday, said Geoff Fowlestone, a spokesman for the company.

Wesfarmers Ltd., Fortescue Metals Group Ltd., Sydney Water Corp., Delta Electricity, Western Power Corp. and Verve Energy are also backing the study.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net