University experts assess impact of renewables on local economy

The University’s world-renowned Logistics Institute is carrying out a major contract to assess the impact of the huge investment in the renewables industry within the Humber region.

The economic impact study shows the Green Port Hull partnership has created more than 2,000 jobs in the renewable energy sector and its supply chain, providing a significant boost to the economy.

As a partner, the University of Hull’s Logistics Institute assessed the economic, social and environmental impact of the investment by Siemens Gamesa and Associated British Ports (ABP).

In March 2014, Siemens Gamesa and ABP announced an investment of £310 million in the development of an offshore wind turbine blade manufacturing facility on Alexandra Dock in Hull.

Initial findings of the study include:

• Multiplier effect: 1.47
  The economic impact of the initial Siemens Gamesa and ABP investment is substantially greater than their investment.  For every £1 of investment, an additional 47 pence will be generated in the disposable income of the local economy of the Humber
• Employment
  Direct Employment creation (Siemens Gamesa): 1,063 jobs created for the plant with potential for an additional 627 supporting jobs based on the latest employment multiplier data for the UK manufacturing sector.
• Gross Value Added (GVA)
  Direct employment by Siemens Gamesa may contribute up to £71.3m to the GVA of Hull. 
• Pathway to Employment
  76 long term unemployed people securing sustainable employment in related industries, the majority of which are in the caravan industry, which translates to an additional 75 supporting jobs based on current industry statistics. The creation of 76 sustainable employment opportunities has also resulted in benefits saved between £228,820 and £288,891.

Amar Ramudhin, Director of the Logistics Institute at the University of Hull, said: “This impact assessment is an important part of Green Port Hull, offering a valuable insight into how the project is progressing.

“Our research will inform the next steps for the project as the region drives to become a world-leading centre for renewables.”

Green Port Hull is a partnership established to promote the region and attract renewable energy sector investment.