Nissan news brings hope of recovery

Jul 23 2009 by Peter Jackson, The Journal

AT LAST, some good economic news – Nissan in Sunderland is to start producing batteries for electric cars with a £200m investment.

The Sunderland plant, it is reported, beat off stiff competition from other European factories to secure the investment.

This is to be warmly welcomed, not only because it represents a vote of confidence in the Sunderland plant and creates or safeguards some 350 jobs, but also because of the implications for the future.

It could lead to the manufacture of electric vehicles at the plant, and this would mean the North East becoming something of a European centre for the production of tomorrow’s transport technology.

It is likely we will first see hybrid electric vehicles with electricity as a range extender, later leading to battery-driven cars powered by hydrogen fuel cells.

The North East is well placed to benefit from any demand for hydrogen fuelled cars. Some 60% of all the UK’s hydrogen is produced on Teesside as a by-product of some of the chemical plants. And the region’s potential also lies in green technologies other than electric vehicles. As Lord Mandelson, who visited the Sunderland factory with Gordon Brown, said, a “low carbon area” could be established in the North East.

Take, for example, the oldest fuel known to man – wood, or, as it is termed in renewable-speak, biomass. It is a common source of renewable fuel on the continent and there is no reason why it should not be in the UK.

The North East has lots of wood: more than 100,000 hectares of forest cover – about one tenth of England’s total, and this is increasing by about 300 hectares every year.

Similarly, with biofuels we are well placed to be world leaders.

We have a hinterland of high-yield farming and, on Teesside, an existing chemical and engineering infrastructure, a deep sea port, big storage facilities, a logistics capability and we have the skills base.

Taking into account the region’s expertise in wind power and photovoltaics and the work being done by NaREC at Blyth, then it is not too fanciful to see Nissan’s decision as representing a green shoot for this region.

Peter Jackson is a writer and ex-business editor of The Journal – p.jackson77@btinternet.com