CASTLE Cement is preparing to burn Cemfuel again next week despite a long-running battle with environmental campaigners.

And the company could win them hundreds of thousands of pounds compensation from the Environment Agency if it wins a court battle to try and have the "hazardous waste" tag taken off the coal substitute.

Today, environmental protestors vowed to continue their protest against the fuel, claiming the authorities had not taken the risks seriously.

An Agency inspector visited the Ribble Valley plant yesterday to check new monitoring equipment in the wet kilns five and six. A decision was expected today.

Ian Sutheran, Castle Cement's general manager, said they expected to begin burning Cemfuel, a cheaper substitute for coal, from next week. Mr Sutheran said the quality of emissions had been proven to be improved with the use of Cemfuel. Castle Cement stopped burning the fuel in June, only hours before new European anti-pollution laws came into effect. The Environment Agency said they could only use Cemfuel in kilns five and six if they installed £160,000 of monitoring equipment.

The firm plans to fight the Environment Agency's classification of Cemfuel in the High Court, London, on December 18 and 19.

Environment Agency spokesman John Isherwood said that, if the firm won, it could claim compensation from the Agency for the cost of installing the monitoring equipment and using several thousand tonnes of extra coal during the last five months.

Mr Isherwood said: "As far as we are concerned, Cemfuel is a hazardous waste and, even if it was reclassified, we would still impose restrictions. We are pretty confident we are going to win this case."

The two wet kilns may be closed in the next three to four years but Environment Agency officers are still considering whether to allow another variety of Cemfuel to be burnt in dry kiln seven. Local people will be invited to comment on December 16 and 18 at St Mary Magdalene church hall, Clitheroe, before a decision is made.

David Mortimer, chairman of Blackburn, Hyndburn and Ribble Valley Friends of the Earth, said the group would continue to protest against Cemfuel burning.