ENERGY giant Drax has confirmed it is continuing to look at making a huge biomass-fired power plant at Immingham viable, after binning a proposal for a similar venture at Selby.

Hard lobbying to maintain the level of Government subsidy and opening up the £700 million project to potential financial partners have been unveiled as core strategies as the company seeks to significantly expand its renewable capacity.

As reported in October, the Government's intended stance on biomass as an energy source was too cautious for the UK's biggest electricity generator, with chief executive Dorothy Thompson left disappointed with the level of support offered.

It focused on a mechanism that would see the support for projects drop from 1.5 renewable obligation certificates to 1.4 post 2016.

The Government has consulted on the figures, with final figures expected soon.

Production director Peter Emery said: "The project is more challenged than we would have hoped, but we haven't given up hope and we will continue to work hard.

"We would be surprised if the Government increases the level of support, but the drop from 1.5 to 1.4 is a concern for us.

"We have asked it to try and get rid of that requirement or push it further out.

"Another alternative would be to seek partners to help us deliver the project swiftly. People may wish to take part in the project."

The Immingham proposal, by the western access to the port, has been named Heron Renewable Energy Plant, and would create 150 permanent jobs, with more than 800 in the construction phase.

A joint venture with Siemens, it would also be a boon to the contracting sector, with additional maintenance and repair work up for grabs.

Capable of powering 500,000 homes, Mr Emery said lower logistics costs was a key factor in the decision to scrap the Selby proposal, together with a penalty from the National Grid if Drax didn't commit to the site on the existing coal-fired plant, where the raw material also comes from Immingham – via train. A similar proposal for Hull was cancelled in April 2009.

Mr Emery said: "The Immingham project is more attractive. It is on the coast, it has lower costs when it comes to supply and our view is that project is still worth fighting for."

The latest stage in the long-running feasibility assessments for the project, which went public in November 2008. Should it go ahead, then Humber International Terminal, at Associated British Ports' Immingham complex, would also be enhanced.

At Drax, earnings for the year 2011 were down 15 per cent from £392 million to £334 million, however profits came in at £338 million, due to an exceptional tax credit.

Mr Emery said: "We feel we have delivered a good performance across the business. Markets have been very volatile but the plant has been well run, we have kept control of budgets and we have seen some good, strong discipline in terms of capital projects. we are ahead of our expectations."