The Biofuels complex will be fully operational in 2006

The Biofuels Corporation plant is being built on a brownfield site at Seal Sands near Stockton.

The �48m complex, the first of two planned for the area, will produce 284 million litres of biodeisel, using renewable vegetable oil crops.

The plant is expected to create about 75 new jobs - with 200 more people likely to find work transporting raw materials across the river at Teesport.

Construction on the second plant is due to start in mid-2005 and will bring the total biodiesel production to 568 million litres by 2006.

John Nicholas, chief executive of Biofuels, said: "This won't be a massive plant to look at, but it will be huge in terms of what it produces.

"We are hoping to have full production up and running by the second quarter of 2005. Another plant is planned for 2006."

North East farmers are likely to reap some benefits as the company is interested in taking oilseed rape from local suppliers.

The oilseed will be mixed with standard diesel to run conventional car and truck engines with lower emissions and higher efficiency.