THE North-East’s ambition to become a green energy hub could be set for a major boost after the Government pledged to drag the UK out of the “dunce corner” to meet its renewables target.

Darlington firms CTC Marine and Mech-Tool Engineering are among the innovative companies helping build the region’s reputation as one of the leading centres in the offshore energy supply chain.

CTC Marine recently completed the installation of the £42m Wave Hub project and Mech-Tool this month secured a £2.3m offshore contract.

However, industry leaders have warned the Government they need much bigger investment if the UK is to become a world leader in wind farm technology.

Energy Secretary Chris Huhne officially opened the world’s largest offshore wind farm yesterday, a project located off the Kent coast that has drawn criticism for ignoring UK contractors.

Tyneside-based McNulty Offshore Construction was one of the few home-grown firms to benefit from the Thanet development, as less than 20 per cent of the £900m investment in the facility went to British companies.

In his speech to the Liberal Democrat conference this week, Mr Huhne predicted a third industrial revolution led by green energy, and during a ceremony at sea to mark the launch of the Thanet site, reaffirmed that offshore wind power was a key part of boosting renewables, and the Government would improve the “atrocious record” on green energy it had inherited.

He said: “We need to make sure we have both the supply chain and the skills, and we will do what we can to make sure we are as attractive as we can be to investors.

“We do have an awful lot of wind and wave and tidal power and we are determined to have a supply chain to match.”

Concerns remain that Mr Huhne’s promises will not be delivered amid the upcoming round of public spending cuts.

Environmental group Friends of the Earth called on the Government to guarantee funding of at least £2bn a year on low-carbon technology.

Currently, the UK sources only three per cent of all its energy from renewables, against a target of 15 per cent by 2020. The Thanet site increases generation by 30 per cent, but construction is due to start on an even bigger wind farm, the London Array, in the Thames Estuary.

Hartlepool’s JDR cables, a leader in the field of subsea power cables, has a £33m deal to work on the project.

Wind power is increasingly important in the North-East’s drive to become a centre of excellence for green energy, with Clipper Windpower to build a £25m blade factory in Newcastle.