THE region has taken a step closer to becoming the recycling capital of the UK, following the commissioning of a £300,000 plant to turn unwanted wood into green 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 have major environmental benefits over fossil fuels, and can often prove more cost effective because they are not subject to the Climate Change Levy.

He added: "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.

"Wood pellets reduce emission levels, are low in moisture, produce less ash and cause less wear and tear on boiler systems."

Several schools in County Durham, along with an organic bakery in Cumbria, are currently using the pellets.

The new pellet plant is part of Premier's overall strategy to invest in technologies which recover value from material that would otherwise go to landfill.

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