THE future of the chemical industry comes under the microscope at a conference this week.

UK Government officials will join representatives from leading chemical companies in Britain and delegates from the continent, on Teesside, to look at European regulations and the development of energy sources.

The two-day discussion, to be held at Gisborough Hall, Guisborough, east Cleveland on Thursday and Friday, is the annual conference of the Development Initiative for Chemical Industry Dependent Areas in the United Kingdom (DICIDA-UK).

DICIDA member companies account for nearly 100,000 jobs, 34,000 of which are in the North-East.

Rapid changes in the energy field; the development of biodiesel facilities and the potential for producing "green" ethanol on Teesside; the growth of the hydrogen economy; and new technological developments will be examined at the conference.

At a time when there is talk in the industry of closing down plants in the face of the high energy prices, energy is near the top of the conference agenda. Three of the largest industrial users of gas in the country are based on Teesside.

"We cannot continue to use valuable feedstock for the chemical industry merely as fuel in cars," said DICIDA chairman Magne Haugseng, who leads the European team at the Tees Valley Joint Strategy Unit.

"We need to look for viable alternatives as fuel. Real sustainability covers economic, social and environmental issues. We need to ensure that we do see the correct balance of them all, as only that way will be able to protect our local economies."