Mayors team up on £5bn bio-economy
York & North Yorkshire Combined Authority and Tees Valley Combined Authority have formed a new partnership with the University of York and Teesside University to support the creation of a bio-industrial cluster focused on green energy.
The cluster will bring together cross-sector partners from academia, industry and local government and is designed to attract public and private investment with the aim of driving clean growth, expanding high-value employment, and securing global investment, while positioning both regions as contributors to the UK’s shift toward a low-carbon, circular economy.
According to the partners, the collaboration could expand the regional bio-economy by £5bn, support the launch of 100 bio-based start-ups, and provide future-focused training for 5,000 people through apprenticeships, reskilling schemes and higher-education routes aligned to bioeconomy needs.
The cluster intends to align scientific research with industrial scale-up to accelerate development in bio-industrial advanced manufacturing, particularly in sustainable materials and chemicals.
The partners note that 96% of manufactured goods rely on chemicals derived from fossil fuels, a source of roughly 10% of global greenhouse-gas emissions.
These products include everyday items such as detergents, cosmetics and clothing, as well as electronics including smartphones and laptops.
The cluster aims to bring together facilities and industrial capabilities to support innovation in next-generation plastics, chemicals, fuels, and construction materials, areas that represent significant contributors to UK GDP.
The partnership’s ambitions were outlined at a roundtable in Darlington on Thursday, attended by York & North Yorkshire Mayor David Skaith, Tees Valley Mayor Ben Houchen, government representatives and stakeholders from business, academia and industry.
The programme will officially be launched at an event in London in February, where the authorities will present the regions’ investible proposition to government and financial institutions.
David Skaith, Mayor of York & North Yorkshire said: “York & North Yorkshire is home to national leaders in developing plant and biological alternatives to fossil fuels.
“Over 10% of the UK’s bio-economy workers are based in York & North Yorkshire, with more than 7,000 businesses focused on science and technology in agriculture, the production of alternative materials to fossil fuels and sustainable food production.
“This collaboration with Tees Valley will support growth in York & North Yorkshire with the opportunity of creating 5,000 high-quality jobs, supporting the UK’s environmental ambitions and attracting global investment to our region.”
Tees Valley Mayor Ben Houchen said: “This collaboration is another major step in driving forward Teesside’s growth as a powerhouse for industry and innovation.
“By teaming up with York and North Yorkshire, forward-thinking industry leaders and our outstanding academic institutions, we’re combining our strengths to attract new investment and create thousands of good, well-paid local jobs.
“This partnership will put Teesside, Darlington, and Hartlepool at the heart of a new wave of industrial growth in the sector, securing our place as a leader in the industries that will power the UK’s economy for decades to come.”

