Robert Cottage (49), of Talbot Street, Colne, and David Bolus Jackson (62), of Trent Road, Nelson, made separate appearances before the court charged with being in possession of an explosive substance for an unlawful purpose. The offences are under the Explosive Substances Act 1883.
Both men were remanded in custody to appear at Burnley Crown Court on October 23rd. Cottage was arrested at his home on Thursday, while retired dentist Jackson was arrested in the Lancaster area on Friday, the same day as he left a dental practice in Grange-over-Sands.
The 22 chemical components recovered by police are believed to be the largest haul ever found at a house in this country.
Cottage is an ex-BNP member who stood as a candidate in the Pendle Council elections in May.
Mrs Christiana Buchanan, who appeared for the prosecution in Jackson's case, alleged the pair had "some kind of masterplan".
She said a search of Jackson's home had uncovered rocket launchers, chemicals, BNP literature and a nuclear biological suit.
Police raided Cottage's Talbot Street home on Thursday of last week. The house was taped off while forensics officers searched the premises. Neighbours were told to stay in their homes for their own safety. Mr Cottage's car was also taken away for examination.
Officers also made a thorough examination of Jackson's Trent Road home and, again, officers were on duty outside the house. Forensics officers examined the property.