London (CNSNews.com) - A deal to recycle a toxic 'ghost fleet' of ex-U.S. Navy ships in Britain has been blocked by the U.K. Environment Agency.

The agency has withdrawn its approval for a UK company's contract with U.S. authorities to dismantle the 13 vessels at its yard in Hartlepool, in northeast England.

According to the agency, the planning and environmental requirements for dry dock dismantling have not yet been met.

Four of the ships already have set sail for the U.K., and they should arrive by mid-November.

However, the agency left the door open for the work to eventually be completed at the Hartlepool site. The deal raised the ire of environmental campaigners in both the U.S. and Britain who objected to the fleet being floated across the Atlantic.

Craig McGarvey, the agency's area manager, said, "The Environment Agency's priority is to make sure that the environment is protected and that all the legal requirements are complied with.

"If, in the future, all the environmental and planning requirements are met, there is no reason why dismantling and recovery of ships should not take place at the Able site."

Able UK managing director Peter Stephenson has said that the relevant paperwork will be ready in time for the ships' arrival. In a statement, he said the company had met Environment Agency representatives and was expecting a written list of concerns imminently.

"We do remain satisfied that we have relevant planning permissions in place for the recycling of the vessels and the creation of dry dock facilities," Stephenson said.

"We have applied for approvals from the Department for the Environment, Food and Rural Affairs in relation to work on the dry dock facilities, covering matters such as dredging.

"Given that similar approvals have been given in the past, we are confident these will be in place by mid-November," he said.

Environmentalists are concerned that the ships may leak their toxic cargo into the sea while in transit. The vessels are contaminated with chemicals including polychlorinated biphenyls, asbestos and heavy diesel.

"The Environment Agency must now make it clear that the ships must not be allowed to enter U.K. waters and must send them back to the U.S. This is a real victory for the environment and for local people," said Tony Juniper, executive director of Friends of the Earth.

Previously, U.S. environmental groups succeeded in stalling the departure of the remaining nine ships from the James River in Virginia.

An U.S. court date to hear a challenge from the environmentalists has been postponed, keeping the ships in dock until next April.

The U.S. Marine Administration has also said it is conducting further environmental tests on the ships after the international outcry.

See previous story:
Toxic Fleet Sets Sail to UK From US (Oct. 7, 2003)

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