Plans have been submitted for a plant that will convert thousands of tonnes of straw into fuel for homes and businesses.

Pelco has applied to East Cambridgeshire District Council to build the plant in Queen Adelaide, near the Potter Group facility.

The company says that, over the course of a year, the plant will process around 150,000 tonnes of wheat and oil seed rape straw gathered from farms within a 50-mile radius.

Baled straw would be delivered by road from farms, before being converted into pellets and transported by rail to renewable energy plants across the region.

Simon Barnard, chief operating office for Pelco, said: “We are delighted to submit our planning application for our first pelleting plant having brought together a great team to build and operate it.

“It’s very exciting to think that in a little over a year we will be producing a low carbon biomass fuel sourced from British farms and providing the energy to heat and power British homes and business.”

A screening option, approved by the district council earlier this year, outlined plans for the proposed development, which would see one building erected on site and divided into three areas; for storing, grinding and then processing the straw bales.

The plant, which would take up almost five acres, would be capable of operating 24 hours a day and would be able to deal with 150,000 tonnes of straw per year.

The plant at Ely is part of plans for four other proposed plants, earmarked for North Yorkshire, Birmingham, Surrey and Wiltshire.