The UK Government has signed a non binding memorandum of understanding (MoU) with Mitsubishi Power Systems Europe (MPSE). The company intends to invest up to GBP100m in an offshore wind turbine project in the UK.

The government is working with MPSE, and is intending to provide grants of up to GBP30m to support the project. By working closely with Mitsubishi, the UK is a strong contender to be a manufacturing base for Mitsubishi in the future, which could create up to 1,500 new jobs.

Mitsubishi will be working closely with UK based companies and organizations to develop the turbines needed for the next generation of offshore wind farms. The UK has revealed a new funding of GBP18.5m for an offshore wind test site in the North East of England.

The site, off the coast near the New and Renewable Energy Centre (Narec) in Blyth, will act as a technology demonstration and development platform for the multi-megawatt offshore wind turbines.

It also complements government support for a blade test facility in the North East that will enable the testing of blades up to 100mt in length. These testing facilities are expected to make the UK a prime location for companies such as Mitsubishi.

Lord Mandelson, business secretary said: “Mitsubishi’s investment in wind turbine R&D and the creation of 200 highly skilled jobs is great news for our future plans in low carbon, high technology industries. The UK is now well placed to manufacture the turbines needed for the next generation of offshore wind farms. We will continue to work with Mitsubishi to secure production in the UK.”

Ed Miliband, energy and climate change secretary, said: “This decision by Mitsubishi is a sign that the UK is starting to turn its leadership in offshore wind generation into leadership in manufacturing. We have the wind resource and we now have an industry that is really starting to grow.

“This is possible because of our domestic market and our commitment to support companies that locate here. It is another step to turning Britain into a leading green manufacturing center.”