MAJOR changes to Siemens' £310m offshore wind facility in Hull will make the region more competitive and popular with investors, industry experts have said.
The German energy giant last week revealed a turbine blade factory proposed for Paull will now be built at Alexandra Dock instead.
It was an announcement that took business leaders and politicians alike by surprise but the implications are now becoming clear.
The blade factory will be smaller but more productive, upping output from 450 to 600 units a year and allowing some to be exported.
John Fitzgerald, Humber director at landowner Associated British Ports (ABP), hailed it as evidence the facility would be a "world-class" hub.
The Green Port Hull development at Alexandra Dock in east Hull, which was already going to house Siemens' turbine assembly and distribution centre before the changes, is set to provide riverfront docking on the Humber.
It means ships of almost any size can moor without having to negotiate their way in through tight harbour gates.
Coupled with the increased capacity, that puts Siemens in a position to potentially sell worldwide from Hull.
Mr Fitzgerald said: "Because we're building a new berth, we will get very big ships there, so we will be into global markets.
"We will have a whole range of vessels exporting turbines around the world.
"This will be an export hub for the global industry."
As well as putting Hull's renewables scene even more on the map, the advantage of exports is the way they reduce risk.
UK wind energy is heavily dependent on government support and a general election is coming up next year.
Furthermore, the main method of funding the vast British North Sea offshore wind fields is a set of multi-billion-pound public investments called Contracts for Difference.
They came in for fierce criticism from the House of Commons Public Accounts Committee last month, with chairman Margaret Hodge calling them "poorly conceived and managed".
She said a decision to award offshore developers cash without competition "failed to adequately secure best value for consumers" and could hike up energy prices.
While all main political parties are committed to renewable energy, a shadow of uncertainty remains.
Siemens' ability to export blades to Danish, German and Dutch waters is likely to give the site a more stable future.
Sam Pick, business development director of Humber industry body the Renewables Network, said: "The one thing that really impacts the Humber more than anything is that the UK continues to support offshore wind development.
"As soon as we have a slowdown, we're under threat.
"This decision does make sense – from an industry point of view, it's been well-received."
The offshore wind industry's success also depends on moving to private funding, away from government contracts.
That means making it appear less risky for hedge funds and other large-scale backers, and driving down costs is key.
So Siemens' move to a 15 per cent smaller blade factory with a 20 per cent higher output is a step in the right direction.
Alan Lowden is research and development director at the Green Port Growth Programme, which provides funding and support for businesses in the market.
He said: "In the interests of trying to generate more efficiencies, this type of thing is a good move.
"They're trying to make the industry more attractive to investment.
"Everybody is trying to get to the end point of making the industry more competitive – we have to take this on face value, that it's a key means of driving out a little bit more cost."
Although the 1,000 jobs being created and the total joint investment by Siemens and ABP remain unchanged, the move does considerably alter how the site will work.
With the blade factory no longer going up on 600 acres of ABP land earmarked for green energy near Paull, there is no anchor tenant.
However, Mr Fitzgerald stressed that was not a bad thing.
It means more space for so-called tier one suppliers, major corporations that make towers, foundations and transition pieces fixing the turbines in place.
Locating Siemens' entire operation in Alexandra Dock will also give them more independence.
An internal road linking the two sites is still likely to be built, giving suppliers direct access to the assembly area.
In addition, it will allow them to ship non- Siemens orders from elsewhere in the Port of Hull.
Mr Fitzgerald said: "They will also be suppliers to Siemens' competitors – we can export towers or whatever out of King George Dock for the stuff that isn't going to Alexandra.
"It's creating an opportunity for more businesses and more jobs."
Mr Fitzgerald said there had been a string of serious enquires from major firms since Siemens first committed to Hull in March.
Korean tower manufacturer CS Wind is strongly tipped to set up in Paull, building a factory that would create about 500 jobs.
While Siemens is bound to be the main customer for firms in the region, the centre of expertise its facility will create is perhaps an even bigger draw.
Mark O'Reilly, chairman of green support group Team Humber Marine Alliance, said: "I would be surprised if anybody locating in this area does it just to support Siemens.
"They see that as a key benefit, but we've got the opportunity to supply other companies.
"People want to be part of a cluster and being close to your main customer is very helpful."
