Two regions of the UK have been designated as the nation's first low carbon economic regions.

A world centre for wave and tidal energy is to be established in south-west England, with the new industry - producing new businesses and new jobs - expected to play a vital role in building a greener global economy.

The UK government has designated the region as one of the country's first low carbon economic areas because of its strength in marine energy. The government will make 19.5 million pounds available as part of a 100m pounds two-year investment programme in marine renewables being led by the South West Regional Development Agency (RDA).

And in another development car manufacturer Nissan has announced its intention to invest more than £200m over the next five years in a new battery factory in Sunderland in the north-east of England.

The rechargeable lithium-ion battery plant, Nissan's European Centre of Excellence for Battery Manufacturing, comes as the Prime Minister, Gordon Brown, announced the region would become the UK's first Low Carbon Economic Area specialising in ultra-low carbon vehicles.

The battery investment makes Nissan Sunderland a good contender for manufacture of the group's new "greener" electric vehicles.

Low Carbon Economic Areas (LCEAs) were introduced in the Government's Low Carbon Industrial Strategy earlier this year. They aim to draw together national, local and regional agencies to focus support on accelerating the growth of low carbon industries, skills base and supply chain.

The North East LCEA, led by One North East, will focus on supporting the transformation of automotive industry, providing support for innovation and demonstration, skills training and clustering of manufacturing.

The government investment in the south-west includes 9.5m pounds for the regional development agency's (RDA) pioneering Wave Hub green power project that recently received the go-ahead from the agency and that could create more than 1,800 jobs in the UK. A further 10m pounds has been made available for the SW-RDA to support other marine energy projects in the region.

The announcements mark a significant endorsement of the Wave Hub project, a gigantic grid-connected socket on the seabed off the coast of Cornwall for wave energy devices to be tested on a scale not seen before.

The European Regional Development Fund (ERDF) convergence programme also announced that it will invest 20m pounds in the Wave Hub that will be commissioned in 2010.

With government, RDA, European and private-sector funding, the total investment in the south-west's marine energy programme in the next two years is expected to be more than 100m pounds, putting the region at the forefront of this emerging global industry.

Lord Mandelson, Secretary of State for Business, Innovation & Skills, named the south-west as the UK's first low carbon economic area at the launch of the government's Low Carbon Industrial Strategy in London.

Stephen Peacock, Enterprise & Innovation executive director at the South West RDA, said: "This is about a new industry and new jobs, and the south-west's critical role in building a greener global economy. Being identified as the UK's first low carbon economic area is a tremendous accolade and recognition of our commitment to develop this unprecedented economic opportunity. We want to forge a new industry from the seas around our shores, and today's announcements cement our position as a global leader in wave and tidal technologies.

"We also welcome the Low Carbon Industrial Strategy which sets out a range of opportunities to ensure that we take advantage of a global market for low carbon products and services that could be worth 4.3 trillion pounds by 2015," he added.

The RDA's Stephen Peacock added: "It's all systems go for Wave Hub. We have our consent, our funding, and our first developer signed up. Ocean Power Technologies has been working with us from the start and is one of the world's leading wave energy companies. We are delighted to have them on board."

Carolyn Rule, cabinet member for economy and regeneration at Cornwall Council, said: "The announcements mark a huge investment in Cornwall's low carbon economy and put us at the forefront of green energy and green job creation, both of which are priorities for Cornwall Council and our partners."

Contact: South West of England Regional Development Agency

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