A wind farm company hopes to create hundreds of jobs by establishing its headquarters in the region.

More than 140 will be created on Teesside in the next two years by Mayflower Energy.

As governments worldwide sign up to the Kyoto Protocol, which demands that at least ten per cent of energy comes from renewable sources by 2010, Mayflower hopes a new industry will be created for the region, with more jobs as a consequence.

Mayflower Energy, a subsidiary of Mayflower Corporation, is beginning a £30m drive to establish the North-East at the heart of offshore wind farm technology, and to create a centre of excellence for the emerging sector.

It has just been given a grant of £1.5m by development agency One NorthEast to help start its project. The firm has offices in Sotherby Road, Middlesbrough.

Keith Runnacles, managing director of Mayflower Energy, which began trading last year, said the firm had designed a ship to install offshore wind farms more cheaply.

The company has already secured a £74m contract for installing wind farms next year, and more business is in prospect.

It is drawing on the skills available in Teesside, from former offshore oil rig workers, to create wind farms in the North Sea and Europe.

Mr Runnacles said: "Our project, I hope, will be the catalyst for the birth and development of a new industry for Tees Valley, and the UK. There is the potential for several hundred more jobs if industry and government grasp the nettle."

The installation of offshore turbines around Europe alone is expected to increase from about 300 next year to about 2,000 per year by 2007.

The first ship, Mayflower Resolution, is being built and will be ready for operation in spring. It is capable of withstanding gale force winds and installing one turbine per day, a process which can take up to three weeks at present.

Another ship is in the pipeline, and more could be built if demand is high enough