THE Government last night predicted that the North-East would play a major role in the renewable energy industry which, it said, could create up to 35,000 jobs by 2020.

The Government vote of confidence came as Middlesbrough-based Marine Projects International (MPI) agreed a £20m contract to build a windfarm off the Cumbrian coast.

MPI won the contract, with Vestas Kellogg Brown and Root, despite strong competition from overseas.

It will build the most powerful wind turbines erected in the UK.

Last night, a spokesman for the renamed Department for Productivity, Energy and Industry - formerly the Department for Trade and Industry - said: "We welcome this contract, which illustrates the growing business opportunities offered by renewable energy.

"Some 8,000 jobs are already sustained by the renewables industry and, by 2020, the figure could be 17,000 to 35,000 jobs.

"New offshore windfarms such as the one to be built by MPI are an important part of this growth, and together represent the world's biggest-ever expansion of renewable energy.

"The new contract awarded to MPI means that Teesside is set to play an important part in this."

But experts said that estimate was too conservative and believe the number could be up to 50,000 - with 25,000 jobs in the North-East offshore wind industry alone.

Dermot Roddy, chief executive of Renew Tees Valley, which is attempting to put the region at the centre of the renewable energy industry, said: "I believe that the jobs figure will be significantly higher.

"The DTI backed a Greenpeace report last year which estimated that the North-East could get half of the 50,000 UK jobs in just the offshore wind sector.

"We are doing a lot of work to try to attract turbine manufacturers to the Tees Valley. It helps to be able to say we have this unique ship, the Resolution, working out of a Tees Valley berth."

MPI is also poised to agree two more contracts for offshore wind farms, which could lead to an increase in its workforce of 60.

MPI's ship, the MV Resolution, will operate from Belfast to install the wind farm off Barrow.

The company was the first in the industry to have a purpose-built vessel to replace the large fleet of small ships generally used for the installation of wind turbines.

Chief executive Paul Gibson said: "This success against such stiff competition is effectively recognition that, with the MV Resolution, MPI has an unrivalled capability to provide the state-of-the-art installation solution for the offshore wind sector.

"We can now plan ahead for the future of MPI and MV Resolution with confidence."

Offshore construction will begin this week and continue until the Autumn.

The Resolution was designed by the MPI team to overcome problems such as weather, and the low capability of more traditional techniques of building offshore wind farms.

It can transport up to ten wind turbines and operate in water up to 35 meters deep.

MPI was set up last year after a management buyout of Mayflower Energy, which went into administration after parent company Mayflower Corporation got into financial trouble.