PLANS to build the world's largest urban wind farm on land owned by beleaguered steelmaker Corus came a step closer yesterday.

An agreement has been reached by Corus, Northern Electric and Gas and Amec Border Wind, to investigate the feasibility of building the farm on the south bank of the River Tees.

The TeesWind project would use up a major industrial brownfield site, creating new jobs and providing enough energy for an estimated 45,000 homes.

The massive project, which was first revealed in The Northern Echo, is part of a package of measures to help Teesside recover from cut-backs in the steel industry which threaten 1,100 jobs.

Corus would supply the steel and engineering services for the project.

Redcar and Cleveland Borough Council leader David Walsh last night welcomed the development.

"TeesWind represents an innovative approach to dealing with large tracts of former industrial land which would otherwise remain underused for long periods of time," he said.

"There are, of course, planning issues to consider, but already the project provides a clear, visually exciting message that Teesside is moving forward in an environmentally responsible way and enjoying the benefits of the associated new jobs.

The council, the Tees Valley Joint Strategy Unit and the regional development agency One NorthEast are all supporting the scheme, which has secured a share in £120,000 of European funding.

The feasibility study starts this month and will last for 18 months, concluding with a planning submission to the council.

If the outcome is fav-ourable, work could start in 2003, managed by the Newcastle-based agency, Renew North.

Corus UK's construction manager Graham Hillier said: "The project will promote Teesside to the forefront of the Government's drive to promote renewable energy. Corus has much to contribute to the development of renewable energy and we will use the full range of our products and services to make a significant contribution."

News of the feasibility study follows last month's rejection by the Ministry of Defence of a similar scheme for Kielder, Northumberland.

AMEC Border Wind's application for an 80 megawatt wind farm was turned down due to fears that it would interfere with electronics warfare training