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 (MPSE). The company intends to invest up to £100m 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 £30m 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.
Mitsubishi will be working closely with UK based companies and organisations to develop the turbines needed for the next generation of offshore wind farms.
Lord Mandelson and Ed Miliband also announced new funding of £18.5m 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. It is hoped these testing facilities will make the UK a prime location for companies such as Mitsubishi.
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 support companies that locate here. It is another step to turning Britain into a leading green manufacturing centre."
Senior executive vice president 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."
