THE region has taken a step closer to becoming the recycling capital of the UK, following commissioning of a £300,000 plant to turn scrap wood into fuel pellets.

The plant, at Premier Waste Management's Coxhoe recycling centre in County Durham, can produce more than four tonnes of wood pellets an hour, which can be used as an alternative to coal, oil and gas in stoves and boilers.

Kevin Owens, environmental products manager at Premier, said fuel pellets had major environmental benefits over fossil fuels, and could often prove more cost effective because they were not subject to the climate change levy.

He said: "Fossil fuels will become more expensive because of increasing taxes on greenhouse gas emissions. Wood pellets produce significantly less carbon dioxide and because ours are made from recycled wood they do not involve harvesting of trees."

The Coxhoe Recycling Centre is believed to be the largest dedicated recycling site in the UK, covering 50 acres.