Private sector economic development body Opportunity North East (ONE) will invest up to £5 million plus matched funding in the next year in projects to strengthen and diversify the economy of North-east Scotland.
ONE reported on its first full year of operation and set out its priorities for the year ahead at its inaugural annual event – Towards Economic Renaissance – in Aberdeen last night, attended by more than 120 senior representatives from the region’s business community and public sector bodies.
Over the past 12 months, ONE has secured significant funds to support innovation across the region’s key industries, including the £180m funding for the Oil & Gas Technology Centre, and delivered projects with industry to support business growth through new market opportunities, innovation and diversification that will secure high value jobs for the medium to long term.
The investment of £1.4 million in projects in its first year has secured match funding from public sector and industry partners of £1.6 million, demonstrating the catalytic effect of ONE’s private sector led approach to economic development.
ONE will invest up to £5 million in the next year to grow the food, drink and agriculture sector; build the region’s life sciences industry; maximise the oil and gas opportunity; and evolve business tourism to exploit new business and leisure opportunities.
Established in 2016 in response to the economic challenges facing the region, ONE is a private sector led and funded organization with a five-year £25 million commitment from the Wood Foundation. It is also the private sector partner in the Aberdeen City Region Deal, which has secured £250 million of UK and Scottish government funding over 10 years, primarily for innovation projects.
Speaking at ONE’s first annual public event, Towards Economic Renaissance, in Aberdeen last night, Sir Ian Wood, Chairman of ONE’s Economic Leadership Board, said: “In ONE’s first year of operation the sector boards have enthusiastically and effectively engaged with industry across the region and identified opportunities that will deliver business growth and secure high quality employment for the medium to long term. That energy and commitment from local board members across the four sectors is unique and critical to ensuring success in achieving the renaissance vision for North-east Scotland - maximising the oil and gas opportunity that remains, while broadening our economic base. Crucially, our initial investment of £1.4 million has secured £1.6 million of match funding from other sources, demonstrating the importance of private sector leadership in developing projects and securing funding for growth.
“The offshore industry is now in a better position to realise the potential of our oil and gas reserves over the next 20 to 30 years, due to the efficiencies that have been achieved and the regulatory and fiscal changes made in recent years. The Oil & Gas Technology Centre is now established to support maximising economic recovery and transform Aberdeen to a global centre for mature basin innovation and technology development. The £180 million of City Region Deal funding we secured for this project will be matched by industry over the next 10 years. This will help to anchor our very successful supply chain here for the long term. ONE is now focusing its oil and gas work on opportunities across global learning and training, internationalisation, decommissioning and diversification,” said Sir Ian.
Jennifer Craw, chief executive of ONE, highlighted successes and priorities within the region’s other key industries.
“We are building on strong foundations across our four priority industries and by targeting specific, high growth opportunities we aim to deliver the maximum return for investment and leverage co-funding from private and public sector sources to invest in the region’s economic future,” said Ms Craw.
“ONE is working with more than 100 ambitious companies in food, drink and agriculture on growth market opportunities to tap into leading trends and to bring more north east businesses to international markets; pursuing investment in dairy processing to secure dairy farming in the region; developing the business case for the £20 million Agri Food & Nutrition Hub for Innovation and looking at how we can develop the digital supply chain for efficiency, quality and provenance.
“In life sciences, we are building upon our asset base to accelerate the growth of new and existing companies, driving innovation and commercialization, and attracting investment. We are now working towards the Bio Therapeutic Hub for Innovation securing £40 million for a significant development on the Foresterhill Health Campus.
“In tourism the region has a great opportunity to transform itself from a business to leisure destination and we are working with VisitAberdeenshire on this agenda, which includes a new brand identity, activity within target markets, business and industry engagement, and product development,” said Ms Craw.