The Biofuels industry could be worth ?1 billion to the North East economy by 2027 according to a new strategy which identifies opportunities for the region to benefit from the green economy.
The North East Biofuels strategy, commissioned by regional development agency One NorthEast, highlights the opportunity for the region to become one of only a few major hubs for the industry in the UK and Europe capable of supplying the global market and attracting major international investment.

The report identifies a number of potential opportunities within North East England including the creation of a green technology investment fund to encourage businesses to set up in the region, the importance of a strong Biofuels group to represent the industry and strategic investment in research and development.

The strategy is part of the region's wider green aspirations and the renewable energy ambitions described in the Regional Economic Strategy Action Plan - just launched on Friday, May 18.

It will play a key role in meeting the recommendations of the Stern report into climate change that claimed the market for low carbon energy products is likely to rise from ?38 billion now, to exceed ?500 billion by 2050.

Pat Ritchie, Assistant Chief Executive Strategy at One NorthEast said: "The North East is ideally placed to be a major player in the rapidly expanding biofuels industry and an over-arching vision of the strategy is to be internationally recognised as the biofuels hub.

"The combination of the region's strong rural sector and world class chemical and petrochemical industries gives us a significant competitive advantage and means we can produce the entire biofuels process from seed to tank within the North East.

"There is a real need for strong leadership and focused lobbying together to take forward the actions proposed in the strategy successfully. This, together with the subsequent success of the region in transport biofuels, its global competitiveness and its visible commitment to the wider renewable energy agenda, will give the North East the power to impact global markets and influence policies and frameworks that set the context for this important industry in the UK."

There is already ?200 million of public and private investment either in the region or in the pipeline. One NorthEast is supporting a number of green fuel initiatives ranging from involvement with the construction of the largest biodiesel plant in Europe at Seal Sands in the Tees Valley to involvement in One Green Route, an independent green garage network selling biodiesel.

North East Biofuels is a consortium of petrochemical businesses, farmers, agricultural suppliers and One NorthEast. The group was formed to help the region exploit the potential of renewable fuels and ensure it was geared up to support this growth industry and stimulate the market for its products.

Frances Rowe, Rural and Environment Manager at One NorthEast said: "The strategy identifies the importance of technology development and creating the right environment for investment. From a rural point of view it also sets out opportunities to prosper from the development of a robust and competitive supply chain.

"One NorthEast will play a key role in the success of this strategy and the aim is to now set a project up to deliver the strategy and deliver the list of clearly defined actions as well as seizing opportunities as they emerge in order for the region to prosper."

The strategy sets out the importance of providing a 'spine' for the cluster so the North East develops the commercial, technical manufacturing/production environment that will enable the biofuels companies to flourish.

Stan Higgins, Chief Executive of the North East Process Industry Cluster said: "Biofuels is one of many new products that our members are producing to help address global warming. The existing infrastructure of locations such as Teesside with its port, pipelines, storage facilities, transport and other utilities is clearly an advantage to projects.

"Several companies based in the region are already manufacturing bio-diesel and there is a new breed of companies setting up to manufacture Bio-ethanol that are helping the region become a world leading centre for the development of these new fuels."

The strategy will now be sent out to a targeted audience and it is also available on One NorthEast's website www.onenortheast.co.uk