The UK Environment Agency (UKEA) has given the go-ahead for a solid fuel recyling unit to supply Cemex's Rugby cement plant in Warwickshire. Work is expected to start later this summer with recycling firm SITA UK set to run the plant, first proposed six years ago, on behalf of Cemex.

Climafuel, as it the secondary fuel is known, is a solid waste-based fuel made from paper and cardboard, wood, carpet and textiles that cannot be recycled. The UKEA has said it would issue an environmental permit to Cemex, as it could find no problems with emissions, odour and noise from the GBP18m development at Malpass Farm.

"Our decision in this case has been reached following a programme of extended public consultation," an agency spokesman said. "A draft environmental permit and decision document outlining how the Environment Agency has reached its draft decision are now available for public consideration.

"Only after carefully taking into account any additional and relevant matters raised, will a final decision be made on whether to issue a permit."

And new plant will process around 250,000tpa in the kiln as part of its plan to reduce reliance on fossil fuels. Cemex Rugby currently brings the Climafuel in from a processing plant in Birmingham.

One hundred jobs will be created during construction and 25 permanent jobs once it opens.