The PM opened the £45m complex at Seal Sands on Teesside
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Hundreds of thousands of tonnes of environmentally-friendly fuel will be produced every year at England's largest biofuels complex.
Tony Blair has opened the £45m Biofuels Corporation facility, at Seal Sands on Teesside. It will produce biodiesel from rapeseed, palm and soya beans.
Unlike normal diesel fuel, biodiesel is said to contribute less to global warming and climate change.
The plant is expected to produce 250,000 tonnes of fuel each year.
'Every possibility'
Speaking at the opening, Mr Blair said: "If we meet our Kyoto targets, we will only stabilise gas emissions.
"There's a big debate about whether energy should be renewable, nuclear or other but the reality is that we will have to go for every single possibility we can."
Biofuels chairman Mike Buzzacott said: "We are delighted to have the prime minister officially open the new plant.
"This underscores the government's recognition of the vital role biodiesel will play in reducing greenhouse gases and meeting Kyoto targets."