A total of £1.5m is to be invested in developing renewable energy.

Regional development agency Yorkshire Forward is putting the money into the Future Energy Company (FEC), over the next three years.

FEC will work with the region's energy producers, manufacturing businesses and members of the Regional Energy Forum.

The region is well placed to benefit from the world's first offshore windfarms with the potential to be developed into a multi-billion pound industry by 2010.

Lawrence Jones-Walters, head of sustainable development at Yorkshire Forward, said: "The Regional Energy Company will work to maximise the opportunities available through renewable energy.

"Offshore wind is a prime example. The region is well placed to benefit from this lucrative market, and this is a massive opportunity for regional business."