The first step has been taken on a road which could lead to a derelict North-East cement works being transformed into a renewable energy centre.

Planners have approved the erection of a 150ft-high wind-monitoring mast at the Blue Circle Cement works at Eastgate, in Weardale, County Durham, which was closed last year with the loss of 147 jobs.

Although the planning application was made by Blue Circle's French owners, Lafarge UK, the project aimed at developing a wind farm at Eastgate will be handled by Newcastle-based BP Power.

The mast will be sited shortly at the quarry above the cement works and it will monitor wind speeds and directions for at least a year.

Daniel Dufton, of BP Power, who is in charge of the project, said yesterday: "This is the first physical step to be taken since the cement works closed to redevelop the Eastgate site.

"Although it is in its early stages, we are taking a very serious look at developing a wind farm there. We see a lot of potential at the Blue Circle works. What we have seen so far is very encouraging."

Mr Dufton said his company had also been asked by the Upper Weardale Task Force, set up to find new ways of regenerating the Eastgate site, to look at the development of hydro and geo-thermal energy.

This would involve harnessing the River Wear and streams that run into it, and drilling for so-called "hot rocks" known to lie under the old cement works.

Four years ago National Wind Power announced plans to develop a wind farm with 22 giant wind turbines at Rookhope - only two miles from Blue Circle. But these were "put on hold" by the company.

Mr Dufton said that any wind farm built at Eastgate would not be on the same scale, but would still make an important contribution to renewable energy needs.

Wear Valley District Council's director of regeneration, Bob Hope, said they were "very supportive" of the task force's plans to develop renewable energy.

He said the task force would next month be producing a Weardale strategy plan. This would include proposals for high-quality office development, housing and a luxury hotel at Eastgate - to be powered by renewable energy. There would also be a strong emphasis on tourism, linked to the reopening of the Weardale railway.

The strategy plan also included the setting up of more industries, providing much-needed jobs, on the Weardale Steel site at Wolsingham.

"What we are aiming for is a strong sustainable base for the dale, drawn from a whole series of proposals put to the task force," said Mr Hope.