Cemex, which owns the former cement works on the Long Itchington road, is currently seeking views on its plans to create a ‘climafuel’ manufacturing plant at the site.

Household waste from across the area would be taken there and processed to make fuel which could be burnt in the kilns of Cemex’s cement factory in Rugby.

But concerns have already been raised by the town’s councillors who want to know more about its probable impact on the area.

Speaking at last week’s town council meeting Coun Paul Caruana (Lab, Browns Bridge) said: “My main concern is traffic flow. Biffa is hoping to extend its landfill site at Ufton and if that goes ahead there will be a lot more traffic through Southam and the surrounding villages.

“This would add to it that as vehicles would be going in and out of the site 24-hours-a-day, seven-days-a-week.”

Deputy mayor Coun Jim Taylor (Lab, Mill Hill) said: “The unit is supposed to be enclosed but you can imagine that with ordinary household waste arriving there it is going to smell.

“My concerns are about the smell, fumes and particulate matter.”

Coun Jane Soni (Lab, Mill Hill) has been surveying the countryside around the old cement works for British Plant Life and said it is “an interesting area” which “should be conserved.”

Others felt there could be a problem with noise, both during construction and its proposed 24-hour operation.

Coun Taylor was also concerned that Cemex will be submitting its planning application to Warwickshire County Council - the authority which would use the plant.

He said: “The county council be sitting in judgement on it and benefit from it. Instead of sending rubbish to landfill sites and having paying landill taxes and fines it will be sending it here.

“I think it would be appropriate for the Secretary of State to make the final judgement on this instead of the county council.”

Responding to the concerns Cemex’s community affairs manager Ian Southcote said: “This new development will help meet Warwickshire's target of reducing waste to landfill, preserve traditional fossil fuels, reduce CO2 emissions and help meet the fuel needs of the Rugby plant.

“The old buildings on this former cement site would be demolished and replaced with a state-of-the-art facility using mechanical and biological treatment technology to create climafuel. This facility would also create 20 new jobs.”

Cemex intends to address questions raised during the consultation period in its planning application which will be submitted in January.