TOKYO (AFP) - A Japanese consortium hopes to capture carbon dioxide emissions at an Australian power plant by 2009 in a world first that would be a major step towards battling greenhouse gases responsible for global warming, a report said.

Under the plan, about 20 percent of the carbon dioxide (CO2) released by the plant in the north eastern state of Queensland would be trapped, liquefied then stored underground rather than released into the atmosphere.

The Nihon Keizai business daily said J Power and Ishikawajima-Harima Heavy Industries would lead the project alongside the Japanese industry ministry and Australian, US and European firms.

Construction of the CO2-liquefying facility, slated to cost about 124 million dollars, is expected to begin in 2007 and be ready two years later, the report said.

If successful, the process could allow power companies to use increased quantities of cheaper and more plentiful coal in their generators rather than costly oil.

The companies are also hoping to use the technology in developing Asian nations, particularly China, where demand for energy has increased rapidly.

The process, technically known as carbon dioxide sequestration, is currently in use on some oil and gas fields on an experimental basis.