A UK£35m factory planned for a Warwickshire quarry would produce fuel made out of rubbish, contrary to an earlier report in the Telegraph.

The 16-acre site in Southam, for which the cement-making giant Cemex submitted a planning application last week, would use mechanical biological treatment technology (MBT), to accelerate the work of bacteria and produce a dry and clean material that burns well.

It’s intended that the product, Climafuel, would then be burned at the company’s Lawford Road site, in Rugby. The investment would create 25 full-time jobs.

The multi-national corporation aims to produce at least 250,000t of Climafuel every year from 300,000t of household and commercial and industrial waste.

The plant would also blend up to 124,000t of Climafuel brought in from manufacturers outside the county. Another application, for an alternative site at Malpass Farm in Rugby, will be handed in within the next three weeks.

The option which wins most approval will be used.