A NEW joint venture which is looking to raise around £200m to fuel the growth of green industries from the North East is expected to focus on creating a "significant" number of jobs in the region.
Narec Capital has just been launched by The National Renewable Energy Centre (Narec), in Blyth, Northumberland, and financial advisers Ashberg to provide the finance and help that renewable energy projects need to get off the ground.
It will offer a wide range of services to take promising businesses from the early concept stage to full-scale manufacture.
Narec will offer a consultancy service, as well as provide technology testing and development facilities, with the aim of securing accreditations and providing as much information as possible for potential investors and insurers.
When the business is in a position to seek investment, Narec Capital will help to track down suitable investment capital or draw upon its own pot of funding, which is being provided by London-based Ashberg’s wealthy clients.
Ashberg represents individuals and families who have amassed at least £50m in wealth and who are looking for investment opportunities, particularly in the burgeoning environmental industries. The firm is confident of raising around £200m of investment to help commercialise research and development projects.
At its launch this week it said that the package was already receiving a lot of interest from entrepreneurs who are struggling to secure funding from the banks and that a first wave of projects had already been identified.
It also said that one of the main aims of the deal was to create employment in the renewable energy sector, with the North East in prime position to benefit from the extra help.
Michael Hitchcock, finance director at Ashberg, said: “Certainly one of our biggest concerns will be to create a significant amount of jobs in the renewable energy sector, and that includes jobs in the North East, which has a high number of skilled individuals in that area.
“The joint venture will be in a strong position to encourage an increasing flow of public and private capital by de-risking renewable technologies and projects.”
Narec believes that the deal with Ashberg will further enhance both the company and the region’s position as a world leader in renewable energy.
The deal will give Narec, which is charged with leading the development of renewable energy nationwide, far more power to build companies and bring jobs to the North East. The venture aims to invest at least £3m in its first year.
Alan Rutherford, chairman of Narec, said: “Narec Capital has been set up as our commercial arm to help the capital markets access Narec’s wide-ranging technical abilities. The opportunities are immense and we have the ability here to lead the world in de-risking these investments.”
