North to share in £100m fund to develop eco-friendly vehicles

Oct 8 2008 by Karen Dent, The Journal

COMPANIES in the North East are expected to receive a substantial slice of a £100m fund to develop environmentally-friendly vehicles.

The region is a national leader in the creation of low pollution vehicles and the cash is expected to create jobs in one of the healthiest parts of the hard-pressed manufacturing sector.

The Government yesterday announced that grants will be available from next April to help create alternatively-fuelled cars, such as the Nissan hydrogen-powered Almera developed at Sunderland University, and bring together the best research from academics and industry.

John Denham, Secretary of State for Innovation, Universities and Skills, said: “This is great for the North East because the region has major automotive, components, materials, petrochemical and fuel industries, including Nissan as the largest car manufacturer in the UK, their supply chain, Caterpillar and the largest fuel production industry.

“This work will help to secure the long-term future of the British car industry, the people who work in it and the places whose wider economies hinge on attracting international R&D and proving their capacity to add value.”

The five-year Low Carbon Vehicle Integrated Regional Delivery Programme money will be provided by the Department for Transport, One NorthEast and the Engineering and Physical Sciences Research Council. The CPI Group, which worked with Sunderland University on the hybrid Nissan Almera, will carry out research on behalf of ONE.

“The North East’s academic prowess, affluence of industry in the automotive sector and the centres of excellence makes it exceptionally well placed to contribute to the development of low carbon vehicle activity,” said CPI chief executive Nigel Perry.

The Tanfield Group, based in Washington, is already an electric vehicle technology leader, producing the Edison Van, Newton Truck and the Ampere, a car-based van earmarked for production at the end of the year. It is also collaborating on the development of an electric London taxi.

Chairman and founder Roy Stanley said: “Given the present economic climate, the environment is taking a back seat. We don’t build our business model on that. Our vehicles are in operational terms cheaper to run than a conventional diesel. We sell on the economics not the environment. We take a hard-nosed commercial view.”

Sunderland University’s Dr Dirk Kok, who led development of the hybrid hydrogen-petrol Nissan Almera – known as the Nissan HyPower – says alternatively-powered vehicles will not be commonplace for at least a decade.

“There are a lot of practicalities – the infrastructure of the new fuels, where are you going to get them from? Even LPG [liquefied petroleum gas] is not mainstream yet and it has been around since the 1980s,” he said.