The A$1.2bn ($1.19bn) Solar Dawn project was thrown into doubt after newly elected Queensland Premier Campbell Newman threatened to withdraw the A$75m grant promised under the previous Labor administration.
The funding supplements A$464m from the federal government coffer under the Solar Flagships programme and is thought to be critical for the project’s future.
Federal energy minister Martin Ferguson has said the government is considering its own position in light of Queensland’s decision to review the funding.
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