Southern Water is building a sludge recycling centre at Ashford in Kent as part of a £40 million scheme to recycle the solid waste removed during the treatment of sewage into organic fertiliser.
The existing sludge treatment works at Ashford is being expanded and is due to be ready for use by March 2009.
Initially Southern Water also submitted plans to build a similar centre at Aylesford Wastewater Treatment Works but is reviewing its options after withdrawing an appeal against Kent County Council's rejection of the proposals.
The company has gone back to the drawing board and is reviewing all its options to provide the necessary recycling facilities in Kent to meet European standards.