Blow for region as £100m green power investment heads north

The Centre for Advanced Technology will be based in Edinburgh and will undertake research and development for offshore wind power. The move is expected to create up to 200 jobs.

Preliminary work is under way to build two of the world's biggest wind farms off the Yorkshire coast, and business leaders are working behind the scenes to try and secure contracts for as much of the production work as possible. Despite missing out on the Mitsubishi contract, it is hoped lucrative manufacturing work to build hundreds of 400ft turbines can still be attracted to the region.

Hull City Council has confirmed talks with an international company are "at an advanced stage" with regards to a 100m wind turbine factory at Alexandra Dock, possibly creating around 10,000 jobs.

A team from the city, made up of council and business leaders and Associated British Ports (ABP), have launched a pitch called Green Port Hull to prospective investors, outlining what they can offer through the development of the dock.

Simon Hill, executive director of business at Yorkshire Forward, said: "There remains the opportunity to attract investment for the manufacture of an enormous number of large turbines and the foundations, cabling and substation systems that the industry will need.

"The Humber provides an ideal central location for such manufacturing investment. The strong supply chain in the region, and the range and depth of skills in the Humber are also very important."

An 800 turbine wind farm will be built off the coast of Hornsea over the next 10 years, and there are plans for a 1,800 turbine farm to the north of that site.

Siemens, GE Capital and Mitsubishi have announced that they plan to base their manufacturing operations along the east coast. Experts have estimated the production hub could create more than 10,000 jobs.

It is understood that, if successful, a Hull factory could create 1,000 jobs directly and a further 9,000 supply chain posts, building up to 300 turbines a year.

Council leader Carl Minns said: "The success of this project is vital for future growth of the city's economy including bringing thousands of jobs to the area.

"The council has been working with ABP on this project for the past year and has built an excellent working partnership.

"We have an established development team already working hard to bring this and other renewables projects to fruition. With all partners aligned I am confident Hull has the right offer to attract this sort of investment."

Matt Jukes, port director Hull and Goole, said: "Green Port Hull presents a fantastic opportunity for Hull to play a leading role in the UK's green energy revolution.

"The development is already consented, completely environmentally compensated for and can be delivered by 2014.

"We have the land and the location to offer potential manufacturers an excellent opportunity. Alexandra Dock is an existing port facility that will be completely transformed to cater for this expanding market."

Announcing their move to Edinburgh, Mitsubishi said the development builds on an agreement with the Government earlier this year to provide 30m to support the overall investment.

The company aims to deliver the hydraulic technology in the offshore wind turbines, which bosses said they expected will be a "game changer" in the world of offshore power.

Chief executive Akio Fukui said the selection of Scotland is a "significant milestone" and builds on existing Japanese links with the country.

He said: "The successful development of this technology will make Scotland a key player in the offshore wind supply chain, potentially leading to the development of manufacturing capacity delivering to the Scottish, UK and European markets."