Millionaires back North East energy push
Aug 24 2010 by Iain Laing, The Journal
THE growth of green industries in the North East is set to be fuelled by up to £200m of investment from some of Britain's wealthiest families.
The National Renewable Energy Centre (Narec), in Blyth, Northumberland, has struck an exclusive deal with a group of investors interested in ploughing money into the sector.
The agreement, with London-based Ashberg, is aimed at providing the finance to help renewable energy projects get off the ground quicker than is currently possible.
That is part of a wider strategy to turn the North East into a world-leading hub for green industries, which Narec is already at the heart of.
Ashberg represents individuals and families who have amassed at least £50m in wealth and are seeking business opportunities. The deal with Narec is aimed at finding investment opportunities in the green energy sector to help commercialise research and development projects.
It is also hoped the finance will be able to plug funding gaps that could prevent such schemes becoming a reality.
Dr Alan Lowdon, Narec director of technology and innovation, told The Journal the deal with Ashberg would further enhance both the company and the region’s position as a world leader in renewable energy.
He said: “We see this as a fantastic opportunity to develop technology. We have here a dedicated fund which, subject to meeting certain criteria, will allow us to get projects into the funding market much more quickly.”
He said that initially funding would be targeted at smaller technology projects and would see around £30m invested in growing the businesses.
But he added: “There would be a larger fund which would receive these projects when they have been built up and you are probably talking about a couple of hundred million pounds.
“It’s been quite a difficult process to fund our own projects, quite slow, but we have funded the research and development. This fund will help commercialise that research and could obviously make a huge difference.”
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.
“We are a national centre and this funding will make us a much bigger player in the green energy revolution in world terms. It is game-changing and the message is that we are open for business,” added Dr Lowdon.
A third of Narec’s funding currently comes from the commercialisation of its technology and the rest from the Government and Europe. Despite public spending cuts it expects an increase in government investment.
John Blamire, director of Ashberg, which was launched earlier this year by City investment professionals, said Narec was a perfect fit for the investors his firm represents.
“We look after families of very high net worth, that is they have wealth and assets of at least £50m. They have made their money and they want to invest it in certain areas and they see renewable energy as a rising tide,” he said.
“Narec is the centre of this industry and that is why we wanted an exclusive agreement to invest in the technology they are developing. They are a perfect partner for us.
“The commercialisation of this technology has great potential and as the investments are made it will clearly have a lot of beneficial effects for industry in the North East.”
Earlier this year, Narec was awarded £18.5m to build an offshore wind turbine test site by the Department for Business, Innovation and Skills.
The new deal comes after the Crown Estate, which overseas British waters, announced the latest set of locations where wind farms will be based. That all forms part of efforts to meet EU targets for the amount of energy generated from green sources by 2020.
:: For more stories on the Great North Revolution campaign, visit www.nebusiness.co.uk/revolution
