New Northern cluster aiming to shape UK’s bio-industrial future

York & North Yorkshire Combined Authority, Tees Valley Combined Authority, the University of York, Teesside University and CPI have announced a partnership which aims to create around 5,000 skilled jobs across the two regions.

Tees Valley Mayor Ben Houchen speaking at the launch

By harnessing their combined strengths, the authorities have developed a bio-industrial cluster of cross-sector partners across academia, industry and local government.

The cluster will seek to attract public and private sector investment to unlock new opportunities for clean growth, high-value employment, and global investment, positioning the regions at the forefront of the UK's transition to a low-carbon, circular economy.

Additional opportunities include growing the regional bioeconomy by £5 billion, launching 100 innovative bio-based start-ups and equipping 5,000 people with future-ready skills through apprenticeships, reskilling programmes, and higher education pathways tailored to the bioeconomy.

By aligning scientific excellence with industrial scale-up, the collaboration will catalyse the UK's transition to bio-industrial advanced manufacturing in sustainable materials and chemicals - delivering national and global impact for the UK.

In total, 96 percent of all manufactured goods are made from chemicals derived from fossil fuels, accounting for around 10 percent of global GHG emissions. These goods include household items such as detergents and shampoos, clothing, cosmetics, and technologies like smartphones and laptops.

The bio-industrial cluster brings together world-class facilities, strong industrial and SME bases to focus on developing the next generation of plastics, chemicals, fuels and construction that are huge contributors to the UK's gross domestic product (GDP).

David Skaith, Mayor of York & North Yorkshire, and Tees Valley Mayor Ben Houchen welcomed government officials and key stakeholders from academia, business and industry to a roundtable event in Darlington outlining the cluster's ambitions, including the agreement to host an investor showcase in London in February 2026.

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 percent of the UK's bioeconomy 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."

Industry Minister Chris McDonald said: "This will grow the bioeconomy here in Yorkshire and Teesside by £5 billion and create 5,000 new high-quality green jobs in the industries of the future, helping put more money in people's pockets as part of our Plan for Change.

"By bringing academia and industry together this partnership will double down on our regions' strengths and help turbocharge economic growth, creating new start-ups and boosting opportunities for thousands of people - which is what our modern Industrial Strategy is all about."

Professor Sarah Thompson, Pro Vice-Chancellor for Research at the University of York, said: "This partnership brings together some of the North's leading centres of innovation to turn world-class research into real benefits for our region.

"By combining our strengths in areas such as sustainable chemistry and biotechnology expertise, we're helping local industries develop cleaner, greener technologies that support jobs and drive growth. It's about using our research to make a real difference, for communities here in the North and take the lead in creating a more sustainable future everywhere."

Professor Stephen Cummings, Teesside University's Pro Vice-Chancellor (Research and Knowledge Exchange), said: "We are delighted to be involved in this partnership and look forward to using and sharing our expertise to help continue to drive innovation, advance research, and help to develop the skilled workforce needed to meet future challenges.

"We continue to be industry-engaged, delivering projects dedicated to catalysing impactful change, fostering sustainable progress, and empowering industry and society through strategic partnerships and ongoing work at our centres of excellence for bioscience and net zero technologies. Our National Horizons Centre is dedicated to advancing biosciences and cutting-edge healthcare innovation, while our Net Zero Industry Innovation Centre is helping to accelerate the transition to low-carbon technologies and supporting industries in their journey to decarbonise."

Frank Millar, CEO at CPI said: "The launch of the Bio Industrial Cluster North marks an exciting milestone in the creation of a modern, industrial bioeconomy for the UK. This partnership is a powerful example of that bioeconomy in action, bringing together world-class expertise in engineering biology, sustainable chemistry, and advanced manufacturing to build a new industrial ecosystem that delivers leadership in new manufacturing technology and leverages the long established process industry skills in this cluster to deliver economic growth.

"By working together across the public, private, and academic sectors, we can ensure that North Yorkshire and Tees Valley become globally and nationally recognised cluster centres for investment in sustainable manufacturing."

At the launch event, a prospectus was launched with further information on York & North Yorkshire and Tees Valley's shared vision for a bio-industrial future. The official launch will take place in February where the authorities will formally present the regions' investible proposition to government and financial institutions.