The South West has been named the UK's first Low Carbon Economic Area to become a world centre for wave and tidal energy under plans published today.
The region has been targeted because of its strengths on marine energy and will receive £19.5 million as part of a £100 million two-year investment programme in marine renewables being led by the South West Regional Development Agency (RDA).
The Government investment includes £9.5 million for the RDA’s pioneering Wave Hub project, which received the official go-ahead from the South West RDA today and could create more than 1,800 jobs in the UK.
A further £10 million has been made available for the RDA to support other marine energy projects in the South West.
The ERDF (European Regional Development Fund) Convergence Programme also announced today that it will invest £20 million in Wave Hub, which will be commissioned next summer. The first equipment orders have been placed this week.
With government, RDA, European and private sector funding, total investment in the South West’s marine energy programme in the next two years is expected to top £100 million, putting the region at the forefront of this emerging global industry.
Lord Mandelson, Secretary of State for Business, Innovation and Skills, named the South West as the UK’s first Low Carbon Economic Area at the launch of the Government’s Low Carbon Industrial Strategy in London today.
Stephen Peacock, Enterprise and Innovation Executive Director at the South West RDA said: “This is about a new industry and new jobs, and the South West’s critical role in building a greener global economy. Being identified as the UK’s first Low Carbon Economic Area is a tremendous accolade and recognition of our commitment to develop this unprecedented economic opportunity. We want to forge a new industry from the seas around our shores and today’s announcements cement our position as a global leader in wave and tidal technologies.
“We also welcome the Low Carbon Industrial Strategy which sets out a range of opportunities to ensure that we take advantage of a global market for low carbon products and services that could be worth £4.3 trillion by 2015.”
The announcements mark a significant milestone in the Wave Hub project, a giant grid-connected socket on the seabed off the coast of Cornwall for wave energy devices to be tested on a scale not seen before. The South West RDA has today confirmed:
* Total Wave Hub project now valued at £42 million, with funding secured from the UK Government (£9.5m), ERDF (£20m) and the RDA (£12.5m).
* The project has the capacity to generate 20MW of green electricity with the potential to be scaled up to 50MW in the future.
* Legal agreements signed with leading renewable energy company Ocean Power Technologies Limited (“OPT”) to take the first berth at Wave Hub using its PowerBuoy wave energy converter.
* JDR Cable Systems Ltd has been appointed to manufacture the 26.5 km (16.5 mile) cable and hub assembly for Wave Hub at its new, ideally located factory in Hartlepool in a contract worth £7.6 million.
* RDA research and development grant of £229,000 awarded to wave device developer Orecon in Bodmin, Cornwall, with a view to the company coming to Wave Hub in the future.
* Contract for onshore electrical package expected to be let in the next few weeks.
* Applications being invited for the position of Wave Hub general manager, who will lead the operation of Wave Hub.
The RDA’s Stephen Peacock added: “It’s all systems go for Wave Hub. We have our consent, our funding, and our first developer signed up. Ocean Power Technologies has been working with us from the start and are one of the world’s leading wave energy companies. We’re delighted to have them on board.”
Angus Norman, Chief Executive of OPT Ltd, said: “OPT has provided unwavering support to Wave Hub and the South West region’s vision to create a world-class centre for the marine energy industry over the past five years. As a result, we are proud to be the first to sign a Commitment Agreement to make this project a commercial reality.
“With major new funding and final approval today, Wave Hub is sure to become a global showcase for wave power technology and means that it is now gaining momentum as a viable source of renewable energy.”
The South West’s marine energy industry is supported by the £15 million Peninsula Research Institute for Marine Renewable Energy (PRIMaRE), set up two years ago by the Universities of Exeter and Plymouth with funding from the South West RDA and Europe. It offers world-leading expertise at the cutting edge of the industry and already boasts 15 world-class academic staff, 60 researchers and a dedicated technology transfer team that works with businesses to support high quality job creation.
Today’s announcements form part of the Government’s Low Carbon Industrial Strategy and coincide with a suite of other policy announcements including publication of the Government’s energy and climate change White Paper, Renewable Energy Strategy and Carbon Reduction Strategy for Transport, which together form a low carbon transition plan to decarbonise Britain’s economy, cut emissions and meet renewable energy targets.
Ross, Cornwall around 1 year, 12 months ago