London, 10 August (Argus) — Utility International Power is seeking further clarity from the UK's Department of Energy and Climate Change (Decc) on the renewable obligation banding results before it commits to converting its 1GW Rugeley coal-fired power plant to biomass.

Plans for the conversion were announced earlier this year, although the firm wanted to wait for the results of the Roc banding review before proceeding. The plant is part owned by International Power and Japanese firm Mitsui.

Decc confirmed the results last month with the support level for conversion of coal-fired plants to biomass set at 1 Roc/MWh. International Power plans to contact Decc on the results before deciding if the project is financially viable.

“We are going to be seeking clarity from Decc on a number of points in the Roc announcement document,” it said. “We then face the challenge of reviewing the financial modelling and engineering assumptions to see if we can progress with a viable project within the new parameters.”

International Power is becoming a full subsidiary of French utility GDF Suez after approving the latter's offer for the remaining 30pc stake.

If the UK utility proceeds, it expects the Rugeley conversion to take two years before coming on line in 2015.

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