The Biofuels industry could be worth £1 billion to the north east economy by 2027 according to a new strategy, which identifies opportunities for the region to benefit from the green economy.

The North East Biofuels strategy, commissioned by Regional Development Agency One NorthEast, highlights the opportunity for the region to become one of only a few major hubs for the industry in the UK and Europe, capable of supplying the global market and attracting major international investment.

It will play a key role in meeting the recommendations of the Stern report into climate change that claimed the market for low carbon energy products is likely to rise from £38 billion now, to exceed £500 billion by 2050.

“The combination of the region’s strong rural sector and world class chemical and petrochemical industries gives us a significant competitive advantage and means we can produce the entire biofuels process from seed to tank within the north east,” argued Stan Higgins, chief executive of the North East Process Industry Cluster.

There is already £200 million of public and private investment either in the region or in the pipeline. One NorthEast is supporting a number of green fuel initiatives ranging from involvement with the construction of the largest biodiesel plant in Europe at Seal Sands in the Tees Valley to involvement in One Green Route, an independent green garage network selling biodiesel.