Cement firm Cemex plans to take household waste from across the county and turn it into 'climafuel' for its cement works in Rugby.

Yesterday, it submitted a planning application to Warwickshire County Council to build a 16-acre unit on the old cement works at Southam.

But the firm will also be making an alternative application to build it in Rugby.

Currently, 70 lorry-loads of clay a day are transported from a quarry at the Southam site to Rugby on a circular route through Long Itchington, Princethorpe and Dunchurch.

But when the Rugby Western Relief Road opens in 2010, these lorries and any for a climafuel plant at Southam would use the A423 and B4453 for both journeys - an increase to 374 lorry loads a day.

Cty Coun Bob Stevens (Con, Long Itchington) said: "I don't want to set Rugby against Long Itchington, but it would make sense to have it there as the cement works are just across the road.

"The fact they will be making it near the village is not a great concern, but what is worrying people is the increase in lorries.

"Ufton landfill site has just received permission for a new composting and recycling facility and I am not keen on this area becoming the rubbish tip of Warwickshire."

Chairman of the village's parish council David Cobley agreed said: "There is a grave concern that the roads are not suitable. There have been a number of accidents and places where lorries have put wheels on the verge."

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At a Southam Town Council meeting last week councillors said the plant would not affect Southam, but supported the traffic concerns of villagers along the route.

Despite the added cost of transporting the climafuel, Cemex would prefer to produce it at Southam.

Ian Southcott of Cemex said: "The cement industry is fuel intensive and with the rising cost of fossil fuels climafuel is an environmentally friendly alternative and better for us economically.

"Climafuel produces less emissions that fossil fuels and it would mean less waste going to landfill.