THE North-East is in the running to house the largest biodiesel plant in the world.

The Biofuels Corporation, which has its headquarters in Middlesbrough, announced this week that plans were in an advanced stage to build only the second such plant of its kind. The other is in Austria.

Sites at Wilton and Seal Sands were being considered, along with others in Ireland, Liverpool and Hull.

The 250,000-tonne plant is expected to create between 60 and 70 full-time jobs, with 20 operators working in round-the-clock shifts. Biofuels believes it could be in production by the middle of next year.

Biodiesel is a "green" fuel produced from renewable crops such as oilseed rape. It significantly reduces pollution because it is carbon dioxide neutral with negligible sulphur and zero toluene and benzene emissions.

John Nicholas, chief executive officer at the Biofuels Corporation, told the D&S Times: "We have been doing a lot of work with agencies in the North-East with regards to the feasibility of building a plant here.

"In terms of the big water port, the chemical infrastructure and storage, and the keenness of the local farming community, there is a lot of support for putting a biodiesel plant in the North-East."

He said design engineering for the plant had been completed and a preferred site would be chosen by the end of June.

The news was warmly welcomed by the Tees Valley Development Company and the Teesside Chemical Initiative. Both agencies, along with One North-East, have been involved in negotiations with the Biofuels Corporation.

TVDC chief executive Neil Etherington said: "It would certainly be very good news if we could establish the Tees Valley as a centre for this type of new technology and we feel that, in terms of sites, excellent workforce and transport links, we can offer a very attractive package for the Biofuels Corporation."

The prospect of a biodiesel plant on Teesside would also be a welcome boost for farmers in the region.

John Seymour, chairman of the NFU environment committee, said it would be fantastic news.

"With the reforms of the CAP, they are encouraging us more and more to be driven by the market and this would present us with a fantastic opportunity to get into the market," he said.

"At the moment the Government is trying to achieve its target of producing 5pc of renewable fuels by 2015 by importing oil made from rape grown in Spain, which is crazy.

"If there was a plant like this on Teesside it would be wonderful and it would make a huge difference to the local economy."