A GROUNDBREAKING production plant that converts farm crops into diesel could be built in the North-East.

A number of sites on the continent are being investigated by the Biofuels Corporation as potential locations for what would be the world's largest biodiesel producing complex.

The plant would produce biodiesel from renewable crops, such as rape seed.

The corporation has its headquarters in Middlesbrough and chief executive officer John Nicholas said the company was impressed by the level of support in the region for the project.

He said: "The UK looks a possibility for the first plant and we have been particularly impressed with the enthusiasm and support we have received from agencies in the North-East.

"The project is now at an advanced stage and we are hopeful that, with the right facilities and support, we can make an early start on construction.''

The farm crop fuel drastically reduces polluting emissions while improving engine wear, and offers important potential markets for the farming industry.

The corporation, which designed the world's first plant in Austria, believes the new plant could be in full production by the middle of next year.

Neil Etherington, chief executive of the Tees Valley Development Company, said: "It is clear that, with increasing demands for the development of cleaner and greener fuel sources, there is potentially a very large market for products such as biodiesel.

"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 project.''

Dr Ian Click, chief executive of the Teesside Chemical Initiative, said: "The really important benefit of this project is that it would widen the portfolio of chemical industry activities in the Tees Valley - and would potentially make us a major player in the increasingly important new fuels sector.''