THE North-East is to become home to the world's largest biodiesel producing complex - creating up to 275 jobs.

Biofuels Corporation has chosen Seal Sands, on Teesside, as the base for the £25m project.

The site will be used to develop renewable and greener fuels from crops such as oil seed rape.

The deal was clinched with the help of a £1.2m Regional Selective Assistance grant from development agency One NorthEast.

The money will be used to fund the initial building of two plants on site, with the prospect of three more to follow.

North-East farmers could also reap the benefits of the plant as the company is interested in taking oil seed rape from local sources for the first complex. It will also import palm oil and rape oil.

About 21,000 tonnes of vegetable oil a month will be converted into biodiesel.

The fuel can be mixed with standard diesel to run unmodified cars and trucks - significantly reducing carbon dioxide and sulphur emissions and improving engine efficiency.

Biofuels Corporation, of Middlesbrough, is finalising private financial backing for the scheme and will lodge a planning application with Stockton Borough Council this month.

The Seal Sands plant - to be built on brownfield land - will be the most advanced of its type in the world.

Biofuels estimates the new complex will create 75 direct jobs and up to a further 200 spin-off jobs in the local economy.

John Nicholas, Biofuels chief executive, said: "Seal Sands has everything we could ask for.

"It is strategically located for excellent transport links and, of course, has a well-developed chemicals infrastructure.

"It has a deepwater port on its doorstep and available storage. Most importantly, there is a wealth of skilled people living in the area who we can recruit to work at our complex.