Weardale could become Britain's first truly sustainable community following the discovery of 'hot rocks' deep underground.

Experts believe that the eyes of the world will turn to the dale, where a redundant cement works site has now proved to be a unique source of five renewable energy sources.

A Task Force set up to revive Weardale's economy following the closure of the Lafarge Cement's Eastgate works in 2002 announced last week that drillers boring 1,000 metres down had found the final element in an energy jigsaw on which a new eco-village could be founded.

Water heated naturally to 46 degrees Centigrade by Weardale granite can be pumped to the surface to heat buildings in this model development, which could prove a major tourist attraction.

With homes, holiday accommodation and business units, the village could soon create 150 jobs with spin-off benefits for the surrounding area.

From next year, the newly-reopened Weardale Railway will run to the site, making it an even more attractive tourist destination.

Eastgate is one of only two hot rocks sites found in the country and will be unique in combining geothermal energy with hydro-electric, solar and wind power as well as electricity produced by burning waste from nearby woodland.

Together they have the potential to heat and light 4,000 homes, creating an opportunity for Weardale to become energy self-sufficient.

Force members expect the site to attract international attention and are confident of finding commercial companies to develop the project without using public finance, although feasibility work, has been financed by £300,000 from One NorthEast and £245,000 of European funding.

Force chairman John Hamilton said: "Power companies were interested even when this was an unknown quantity. Now we have a real commercial proposition which is unique. We expect there will be a great deal of competition to become involved.

"The development should stand alone. It won't rely on subsidies. It will become an exemplar of how to regenerate rural areas and will sustain the dale for generations to come, keeping people living and working in their home area."

Ian Burdon, of project managers PB Power, in Newcastle, said: "The new village will provide twenty-first century jobs in hi-technology fields. We are seeing another industrial revolution where people use their brains not their brawn and the development will be somewhere where people can set up new businesses and look to the future."

A Newcastle University team originally identified the drilling site on the Slitt Vein, close to Cambokeels mine, where warm water was discovered in the late 1980s.

Development at Eastgate was one of seven key schemes originally identified by the force after the cement works closure was announced and foot-and-mouth hit the dale in 2001.

Bob Hope, regeneration director at Wear Valley District Council, said: "This is absolutely critical to the future of the dale. It could be the catalyst for job creation and greater opportunities in the whole area."

Lafarge, which also sits on the Task Force, announced that its cement works buildings, including its landmark chimney, will be flattened over the next year.

Weardale councillor John Shuttleworth said that Eastgate residents would welcome the bulldozers. He said: "It must be restored to a greenfield site. I will not be satisfied with anything less."