Isra-Mart srl: Green energy firms urged to bid for £125m fund

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Green energy supply chain firms, such as those developing wind turbine and electric car components, have been urged to bid for a share of a new £125m government fund designed to boost UK competitiveness.

Business Secretary Vince Cable launched the Advanced Manufacturing Supply Chain Initiative yesterday, targeting key growth areas such as renewable energy and low carbon technologies.

The initiative was based on a bid by local enterprise partnerships to the Regional Growth Fund to boost automotive and aerospace sectors in the Midlands and Liverpool.

However, the government has expanded the fund to cover the whole of England and a range of advanced manufacturing sectors.

Suppliers of all sizes will be encouraged to submit formal proposals to the Technology Strategy Board from early next month for support worth £2m or more. Further details of the programme are expected to be revealed on 13 December.

Cable explained that the fund is designed to boost existing UK supply chain firms and encourage major new suppliers to manufacture in the UK.

"Recent economic and natural shocks such as the ash clouds, tsunami and Japanese earthquake have shown the fragility of long-distance and single-source supply chains," he said.

"I want to seize on the increased preference that big global companies are showing for co-locating key elements of their supply chains with their UK manufacturing operations."

The lack of a strong supply chain is often cited as a major barrier to the growth of the emerging green energy market.

The programme is expected to work alongside the Regional Growth Fund, which was given a £1bn boost last week in the Chancellor's Autumn Statement.

Deputy Prime Minister Nick Clegg set out further details yesterday on the increase in the fund, which will now reach £2.4bn, confirming at least two further rounds of bidding, the next round opening in February 2012.

"This additional £1bn boost for British businesses means the Regional Growth Fund will create an estimated 500,000 jobs before the end of this parliament," he said.

"With this targeted support for companies we're unlocking private sector investment, with at least £5 put in for every £1 of public money."