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Boost for the low carbon economy

August 2010

The RDA has recently announced a series of measures that will boost the green economy, with: the formation of a new fund for low carbon businesses throughout the region; a £30 million investment into Exeter University’s new Environment and Sustainability Institute at the Combined Universities in Cornwall; and significant progress on Wave Hub. Consider these individually.

First off the new £2.5 million investment is called the Cleantech Co-investment Fund and has been set up and funded by the RDA. The fund has been established by South West Investment Group (Capital) Limited with operational support from South West Angel and Investor Network (SWAIN) and Regen SW. It is open for business and people can find out more information and apply through the following web site link: http://www.swain.org.uk/CleanTech.aspx

The fund will, subject to conditions, provide funding of between £50,000 and £100,000, alongside new equity investments, in Cleantech businesses who are based in the region. It will help support entrepreneurs and early stage businesses looking to develop low carbon technologies and innovations with access to crucial growth capital.

Stephen Peacock, the South West RDA’s executive director enterprise and innovation, said: “This is a fantastic opportunity for the region’s low carbon industry to access a new source of funding. The fund will help businesses grow and invest for the future, creating hundreds of highly skilled jobs. This has come at exactly the right time for the region’s thriving environmental sector.”

Secondly there’s a £30 million investment into Combined Universities in Cornwall which will put Cornwall and the Isles of Scilly at the forefront of environmental and climate change technologies. It was announced by the RDA and the University of Exeter.

The investment – which includes almost £23 million from the ERDF (European Regional Development Fund) Convergence programme - will enable the University of Exeter to build a world-leading Environment and Sustainability Institute (ESI) at CUC’s Tremough Campus, Penryn – bringing at least 800 jobs in its wake.

Professor Steve Smith, vice-chancellor of the University of Exeter, said: “This is great news for Cornwall, especially at a time of national cutbacks in public spending. The ESI will build on the University’s research strengths in climate change and environmental science and add critical mass to the Tremough Campus, which we share with University College Falmouth. The Campus has provided a massive economic boost to Cornwall which will continue to develop now we have funding confirmed for the ESI. It is a pioneering development in linking academia so closely with business and our staff have been actively helping Cornish businesses to succeed.”

Suzanne Bond, the South West RDA’s executive director of people and skills, said: “This is a major investment in Cornwall’s economy which delivers a step-change in the county’s environmental science and engineering capacity. It builds on Cornwall’s expertise and heritage and, combined with a strong business focus, will deliver at least 800 high-value jobs in energy and clean technologies and related industries. It will also leave a lasting legacy by driving long-term growth in the peninsula.”

Last, but by no means least, comes Wave Hub. As Wave Hub travels to Cornwall in preparation for installation this week, BIS Minister Mark Prisk has announced a £1.5 million investment from the RDA in the development of wave energy technology. The investment and installation of Wave Hub mark the UK’s ambition to grow a world-class marine energy industry.

Mr Prisk, who toured Cornwall for two days last week, said the additional £1.5 million grant from the RDA would allow wave energy company Ocean Power Technologies Ltd (OPT) to develop a larger version of its ‘Powerbuoy’ wave energy device.

It follows an announcement by the Government-backed Technology Strategy Board last week of a £7 million investment in nine projects aimed at developing wave and tidal technologies of the future.

The cable laying ship, Nordica, left Hartlepool docks last week, while the Minister was visiting the site at Hayle. Guy Lavender, Wave Hub general manager explains what Wave Hub’s arrival means: “Nordica’s arrival marks the start of the Wave Hub deployment operation and they will begin work straight away. The entire cable route will be surveyed before the cable is pulled ashore at Hayle early next week and buried in the sand for two kilometres out to sea in an operation that will take around two days.

“At the same time the Nordica will head out to sea laying the cable as it goes. It should reach the Wave Hub site after about four or five days and will lower the hub on to the seabed in about 50 metres of water using its on-board crane.”

During his visit the Minister was briefed by the RDA on the progress of Wave Hub, and plans to invest £15 million – including £5 million from central Government – in major infrastructure improvements around Hayle Harbour, to support the development of a new marine energy business park, creating up to 200 jobs.

Stephen Peacock, executive director for enterprise and innovation at the South West RDA, who escorted the Minister on his visit to Wave Hub, said: “This was a great opportunity to brief the Minister on progress with Wave Hub, and for him to meet some of the many businesses and academics involved in developing a marine renewables industry here in the South West.”

In the autumn Wave Hub will undergo a series of tests in preparation for welcoming its first wave energy devices next year.

Wave Hub is being funded with £12.5 million from the RDA, £20 million from the European Regional Development Fund Convergence Programme and £9.5 million from the UK government.