A biofuel plant, turning chip oil into petrol for lorries, could be on the cards for Longbridge as part of the economic regeneration scheme for the area.

The Community Network South West (CNSW) group is carrying out a study into the possibility of building a green biofuel plant, run by a not-for-profit business, on the former site of the Rover works.

It says it could create new jobs, as well as providing a more renewable source of energy for cars and lorries as petrol prices rise.

Consultant Greg Cox, who is working on the feasibility of the biofuel plans, said: "We are looking into what would be the potential of what we could do with this biodiesel plant.

"Our calculations are that it wouldn't really provide a large number of jobs - most likely in the region of about 10-20, but there are other advantages.

"What we are looking at is collecting used vegetable oil from food outlets, possibly throughout the whole of the West Midlands.

"The idea is to feed the used oil into a plant which would convert it into biodiesel, which could then be sold off, either for use in private vehicles, or preferably to large fleet users like the council."

He added there were many new ideas being thrown around by the people working on the feasibility plan, including the possibility of public park land being given across for growing crops to be used to make biofuel.

Biodiesel plants have been touted as a possible solution to the amount of carbon pumped out by cars and lorries burning regular fuel.

But they have been criticised in some circles for leading many countries to clear out land for growing biofuel crops as "cash crops", to the detriment of food crops.

Plants making biofuel from recycled vegetable oil have become more popular in recent years because of this. Sundance Renewables, in South Wales, set up the first plant to convert used vegetable oil in 2002.

It estimates caterers in the UK produce up to 90 million tonnes of oil a year, which can have a harmful effect on waterways if it is just thrown away.

The CNSW biodiesel scheme is part of a wider package of measures to regenerate deprived areas of south-west Birmingham which the group hopes to have in place before it is wound up in December.

It hopes to use social enterprise - not for profit companies run for a community benefit - to stimulate economic regeneration in the area.

Colin Hanno, senior constituency manager at CNSW, said: "At the moment it's really just at a conception stage. On this side of the city there is a lack of enterprise or social enterprise. If this project is feasible we will kickstart it soon."

CNSW is jointly funded by Birmingham City Council and the European Redevelopment Fund. It is aimed at reducing the effects of the closure of MG Rover by supporting the community and voluntary groups.