News Article

• Mitsubishi Power Systems Europe signs MOU signalling intention to invest up to £100 million in UK wind turbine R&D project

• Up to 200 highly skilled jobs to be created by 2014

• Government announces further £18.5 million grant to fund offshore wind test site at Narec in Blyth 

Business Secretary Lord Mandelson and Energy and Climate Change Secretary Ed Miliband today signed a non binding memorandum of understanding (MoU) with Mitsubishi Power Systems Europe Ltd (MPSE). The company intends to invest up to £100 million in an offshore wind turbine project in the UK. This will create up to 200 highly skilled jobs.

The Government is working with MPSE, and is intending to provide grants of up to £30 million to support the project. This follows on from extensive work with MPSE and discussions that the company had with Lord Mandelson and Ed Miliband at the Global Investors conference hosted by the Prime Minister in London on Monday arranged by UK Trade and Investment (UKTI).

This project will be the first step towards the production of turbines for the next generation of offshore wind farms. By working closely with Mitsubishi, the UK is a strong contender to be a manufacturing base for Mitsubishi in the future, which could create up to 1,500 new jobs.

The UK is leading the way in offshore wind. Today's announcement demonstrates both the Government and private sector commitment to developing the industry in the UK. Mitsubishi will be working closely with UK based companies and organisations to develop the turbines needed for the next generation of offshore wind farms.

Today Lord Mandelson and Ed Miliband also announced new funding of £18.5 million for an offshore wind test site in the North East of England.

The site, off the coast near the New and Renewable Energy Centre (Narec) in Blyth, will act as a technology demonstration and development platform for the next generation of large multi-megawatt offshore wind turbines. It also complements Government support for a blade test facility in the North East that will enable the testing of blades up to 100m in length. These world-leading testing facilities will make the UK a prime location for companies such as Mitsubishi.

Business Secretary Lord Mandelson said: "Mitsubishi's investment in wind turbine R&D and the creation of 200 highly skilled jobs is great news for our future plans in low carbon, high technology industries. The UK is now well placed to manufacture the turbines needed for the next generation of offshore wind farms. We will continue to work with Mitsubishi to secure production in the UK.

“I’m delighted that we are also supporting the wind test site in the North East.  Coming on top of funding for Narec announced in the Pre-Budget Report, it further strengthens the North East’s position as a leader in the offshore wind farm sector.”

Ian Williams, Director of Business and Industry at One North East, said:

"We are delighted the Government has chosen to support this groundbreaking project.

"Narec is supporting the Agency and our many partners to attract global companies to our region and this further investment develops further our comprehensive innovation and test offer for the global offshore wind industry.

"One North East has been investing in this new market for almost a decade now. Through national investments like this, and the plans Clipper announced last week to create hundreds of jobs on the Tyne, the region is now beginning to reap the rewards of this dynamic new industry."

Andrew Mill, CEO of Narec, responds to the announcement by the Department for Business, Innovation and Skills (BIS) of an £18.5 million grant to fund an offshore wind test site at Narec in Blyth, Northumberland:

“We very much welcome this funding award and the continued support we have received from Central Government and Regional Development Agency, One North East, which is creating a national hub in North East England for the development of offshore wind technologies.

“Today’s announcement will enable Narec to progress with our plans to deliver a 100MW grid connected offshore demonstration platform, with the capacity to accommodate up to 20 large-scale prototypes.

“The facility will be unique in global R&D terms, enabling manufacturers and wind farm developers to identify best practice approaches across the supply chain for the development, deployment and O&M of new turbine technologies, which will be most pertinent to the Crown Estate Round 3 Programme.  It will complement our existing test capabilities and the planned expansion of major component testing facilities, offering the industry a truly world class offering for the proving out of technologies in next generation machines.

“The support for the project is further recognition of the significant steps made by Narec over the last 5 years, working with global turbine, blade and electrical infrastructure manufacturers on their large turbine, blade and associated equipment development programs.  It represents a huge boost to the credentials and ambitions of UK plc, now primed to lead the world and optimise the economic benefits for the UK from the expansion of the sector.

“Today’s news of the MOU signed between BIS and Mitsubishi Power Systems Europe (MPSE) is further testament to the commitment of the UK Government to realise a UK offshore wind industry.  Narec welcomes this investment and looks forward to working with MPSE on their R&D programme.”

Energy and Climate Change Secretary Ed Miliband said: " This decision by Mitsubishi is a sign that the UK is starting to turn its leadership in offshore wind generation into leadership in manufacturing. We have the wind resource and we now have an industry that is really starting to grow. This is possible because of our domestic market and our commitment to supporting companies that locate here. It is another step to turning Britain into a leading green manufacturing centre. 

Senior Executive Vice President Mr Ichiro Fukue and MPSE CEO Mr Akio Fukui said “Mitsubishi Power Systems Europe is delighted to be working in partnership with the UK Government to create this exciting opportunity for the development of world-class offshore wind technology in the UK. MHI’s Ship Building division is interested in entering the offshore wind installation and operation and maintenance vessel market. We have been working with UKTI for some time and we look forward to further growing our offshore wind business with UK-based partner and supply chain businesses from 2010, bringing much needed competition into the offshore wind turbine supply market, and economic benefit to the UK”

Ends.

For more information please contact: Paul James, PR Specialist Advisor, One North East  Tel: 0191 229 6429 Mobille: 07795 267126