Seoul - The German solar energy firm Conergy has signed a 29.8-million-dollar agreement to extend a South Korean solar energy plant which is already Asia's largest, the company said Wednesday.

The 19.6 megawatt capacity plant at Sinan in the south-west of the country became fully operational in June and will be expanded by 4.35mw by the end of the year.

When completed, the plant will cover an area of 720,000 square metres, equivalent to 96 football fields and produce 33,000mw hours of electricity, or enough to supply 
7,200 households.

It is estimated that the plant will save 24,000 tons of carbon dioxide a year.

South Korea's goal is to increase the portion of alternative energies 5 per cent of primary consumption in the next four years. In 2006 it was 2.2 per cent. Besides solar energy, the government is looking to wind energy and hydrogen fuel cell as alternatives. (dpa)