7/12/2004 - Work is now under way on building the world's largestbiodiesel plant right in the heart of Teesside. Billingham's BiofuelsCorporation, headed by chief executive John Nicholas, is building a pounds21m plant at Seal Sands to produce renewable fuels from crops such asoilseed rape.

The company has started building and is recruiting almost 30 staff.

The plant will eventually produce up to 250,000 tonnes of fuel a year,with production now due to begin by June.

For Australian businessmen John Nicholas and Max deGrussa the Biofuelsjourney began more than three years ago.

But Mr Nicholas' association with renewable power goes back even further.

A former manager of an Aboriginal co-operative, he worked onrenewable-energy projects including wind and solar power.

In 2000 he became involved with the Biofuels project. After severalpossible locations had been examined, Teesside was named as the home ofthe multi-million-pound project.

"There were a number of factors why we chose Teesside," Mr Nicholas said.

"The skills base here is ideal, we've got a deep-water port on ourdoorstep, all the infrastructure we need is here- and Teesside was keen tohave us.

"We've had a lot of help and support."

The plan has been backed by regional development agency One NorthEast andexpects to receive pounds 1.95m funding.

Work started on clearing the site earlier this year.

Last month, the start of building work was marked with a ground-breakingceremony.

Last June, the company floated on the Alternative Investment Marketthrough an institutional placing at 75p to raise pounds 15m to fund thecomplex, being built on land owned by Seal Sands Storage. As North EastVision went to press the shares were trading around pounds 1.80.

Biofuels already employs 15 full- and part-timers at its Billinghamoffices and recently recruited commercial staff, an accountant and anoffice manager.

The search is now on for people to run the first plant, as more areplanned for the longer term. The production team will be recruited beforeMarch.

Mr Nicholas said: "Construction of the plant modules has been done inAustria and we expect the first of those to arrive before Christmas.

"It will take three months to assemble the plant and get the site up andrunning.

"Commercially we expect to have sufficient customers in place for when wego live in the second quarter of 2005."

The company is aiming at customers in the UK, mainland Europe and fartherafield.

Biodiesel can be mixed with standard diesel before being delivered atgarage pumps and commercial outlets, cutting carbon dioxide and sulphuremissions.

The plant will also produce glycerin- used in the food, cosmetics anddrugs industries- and potassium sulphate.

And there is a strong market for the product in America.

The Seal Sands plant is being built on brownfield land and will be themost advanced of its type in the world. Raw materials for the plant willcome from across the globe. Rape seed oil will be imported from Europe aswell as being grown in the UK.

North-East farmers could also reap the benefit of the plant as the companyis interested in taking oilseed rape for biodiesel production from localsources. Palm oil will come to Teesside from Malaysia and Indonesia.

Another by-product of the plant will be potassium sulphate, which is usedin the fertiliser industry.

Mr Nicholas said: "There's all kinds of markets for biodiesel and it'sgrowing all the time."

Biofuels is one of a number of green fuel firms setting up on Teesside.

"Things are really building in this area when it comes to this industry,"he said. "We've got the opportunity now for the region to become a realcentre of excellence.

"As well as the fuel we're producing, we're working to find new marketsand new ways of using the by-products from the plant. That providesopportunities to increase the area's research and development skills inthis industry- and see this area lead the field."

In little over six months, the Biofuels plant will be a reality.

"It's very exciting to finally be at this stage," he said.

"There's a lot of activity down on the site, our staff numbers arecontinuing to grow and after many years of planning and raising financethings are really taking off."