THE region punched above its weight in the latest round of the Regional Growth Fund, which the Coalition set up to create jobs in hard-hit areas.

Ten successful bids from the North-East have been pledged a combined £48m of the £500m that was up for grabs in the fourth round of the Government’s flagship job creation scheme.

The schemes will create and safeguard 5,600 jobs and draw in £150m of private funding over the next ten years, ministers said.

Half of the successful bids were from the Tees Valley.

Among the winners, who must pass a due diligence process before they receive any cash, is Darlington-based Air Fuel Synthesis.

The business aims to create synthetic petrol, diesel and aviation fuel using renewable power to extract carbon dioxide from the air and hydrogen from water. Only two or three similar schemes are under development worldwide.

“This is brilliant news,”

said chief executive Peter Harrison. “It will also give potential investors the confidence to back us.”

The business operates from the premises of Crane Services (UK) Ltd, in Eaglescliffe, near Stockton, but Mr Harrison intends to move to new premises in the North- East.

Neighbouring firm Tinsley Special Products, which secured £1.9m in the second round of the RGF, has also been successful in the latest round. It makes parts for large commercial vehicles.

Other successes include Hartlepool subsea firm JDR Cable Systems, family-owned chemical firm Thomas Swan and Co, based in Consett, County Durham, carbon capture business NET Power Europe and Newcastle pharmaceutical company Molplex.

A bid submitted by Tees Valley Unlimited (TVU) will develop a skills and apprenticeship programme and provide a route into work for people of all ages.

Stephen Catchpole, TVU’s managing director, welcomed the news.

Sunderland City Council has been allocated £12m to boost business growth around the city. The funding will improve roads at key points, creating smoother traffic flow around the A19 and A1231.

The RGF offer is conditional on the successful conclusion of Sunderland’s city deal bid, which is to be announced in December.

In addition, a funding pledge has been made to the York, North Yorkshire and East Riding business grant programme to back firms in its region.