Denmark’s Dong Energy will pump £6bn into the Humber region between 2013 to 2019, as it builds a fleet of offshore wind turbines close to the coast of the Humber estuary.
Dong currently has two offshore wind farms in the Humber region, and two projects in the construction phase. It's also acquired the lease for the rest of an offshore wind development zone there.
The company’s investments will create jobs, support the thriving supply chain and help the region continue as a hub for the UK's renewable energy sector, according to a report released yesterday by Regeneris Consulting.
This includes an average of 1,600 jobs annually during the six-year period. Additionally, up to 1,500 jobs could be created in operations and maintenance once the wind farms are up and running from 2020.
"Along with other offshore wind companies, we are making a major contribution to the development of the Northern Powerhouse, building strong local economies for years to come," Brent Cheshire, UK country chairman of Dong Energy, said.
Yesterday, energy secretary Amber Rudd said that offshore wind farm projects will have to make deep cost reductions to qualify for future government subsidies, as part of the government's energy policy reset.
While the government is scaling back the subsidies afford to renewable energy projects, industry insiders have warned that this must not threaten the stability of the market.
"The UK is our largest market for offshore wind and we are honoured to be part of the significant growth of the Humber. We see an exciting future in the region with great opportunities for local businesses and people."
And including all construction and operational activity, Dong’s projects could generate a total £1.2bn potential gross value added for the region between 2010 to 2030.
Lord Haskins, chair of the Humber local enterprise partnership, added: "The report is a further demonstration of how investment in the offshore wind sector can have a positive effect on local communities and the economy – in the Humber, as the UK's energy estuary, and in the country as a whole."