HEALTH assurances were given after it was revealed that a power plant plans to create 'green' energy by burning fat from cattle slaughtered at the height of the BSE crisis.

SembCorp Utilities Teesside, which operates Wilton Power Station, near Redcar, said it hoped to capitalise on a global push to use renewable products to create electricity.

The company, formerly Enron Teesside Operations Ltd, has launched what it describes as an open book consultation exercise with the public and local organisations.

It also announced it had lodged an application for £10m from the Government to help to build a £38m plant that would burn sustainable forest to create environmentally friendly energy.

SembCorp must first persuade the Environment Agency that the public and its workers will not be put in any danger by its plans to burn cow fat.

The company said two studies, one carried out on its behalf and another performed for the Government, showed the safety risk was negligible.

The firm is negotiating with the Government's Rural Payment's Agency to buy about 100,000 tonnes of tallow (rendered animal fat). The fat is from cattle culled as part of the Over 30 Month Scheme (OTMS) put in place in 1996 in the wake of the BSE outbreak.

During the crisis, cattle showing signs of BSE were incinerated. But under the OTMS, all cattle aged over 30 months were also banned from the food chain, even if they demonstrated no clinical signs of BSE. The fat the company plans to use comes from these apparently healthy cattle.

Vera Baird, Redcar MP, said: "It is a good development towards sustainable and renewable energy resources. I have had extensive meetings with SembCorp and it asserts clearly that it is totally safe."

The company intends to heat burners to 1,000 degrees centigrade before injecting the liquid fat. The tallow will be transported to Wilton by road, with 12 tankers expected each day, five days a week. There is enough fat to generate power for 18 months, after which SembCorp hopes to be expanding its renewable energy plans.

The 580-strong workforce has been consulted by management. Mike Brider, of the Transport and General Workers' Union, said: "I have not had any negative responses yet. This is not just good for business but is also getting rid of a product in a safe way."

The Environment Agency said a full environmental impact assessment would be carried out when a formal application was received.

Ashok Kumar, Middlesbrough South and East Cleveland MP, said: "Technically the proposal seems to be logical and environmentally benign. However, it is crucial that SembCorp keeps up its constant liaison with all interested parties."