SHIPBUILDING in Hull could be boosted by plans to construct of a fleet of eco-friendly ships.

Discussions are underway between city shipbuilders MMS Ship Repair and a Northern Ireland-based firm over a major project to construct 50 vessels which could create 1000 jobs.

The 3,000-tonne ships would be powered by sail and biogas technology and would transport wood chippings, food waste and other materials from the continent to green powerplants in the north-east of England, possibly Drax, near Selby.

If successful, the shipbuilding scheme, which would last between 2012 and 2020, could create up to 1,000 jobs across the north-east.

The firm behind the project, B9 Shipping, has already held talks with Team Hull Maritime Alliance – a consortium which represents shipping firms in the area.

A member of the group is MMS Ship Repair, based on Alexandra Dock in east Hull which has recently increased its shipbuilding business.

Shipyard manager Tony Marshall said: "We have had a couple of discussions with B9 and it is looking very positive for the Humber estuary.

"Something like this would secure our long-term future which is exactly what we want.

"We are trying to promote the Humber estuary for this type of environmentally-linked work.

"We are ideally situated and are keeping our fingers crossed.

"We are excited by the possibilities and it would be great news for the area."

The ambitious project would see 50 vessels built - each costing about £12m.

Due to the scale of the project, the company envisages more than one yard will build the vessels with masts, spars and sails being made at other locations.

The project is set to be funded by investors and commercial 'contracts of affreightment' while B9 is lobbying to have the UK introduce economic support for the eco-ships along the same lines as the schemes supporting wind, wave and tidal power.

The project will also be exempt from carbon taxation and trade penalties.

B9's managing director David Surplus said: "There is a lot of potential in the Hull area but there are stepping stones we have to take.

"We have to complete our first ship and ensure investors are happy with it.

"We are looking to build 50 vessels for the biomass industry and one thousand jobs could be created across the north east.

"We plan to start production in 2012 by the latest."

The plans have also been welcomed by Team Humber Maritime Alliance which is part funded by Yorkshire Forward.

Project manager for Team Humber Graham Billany said: "This would be a massive boost as there is little shipbuilding being done in the UK.

"This project would provide a major contribution to the region's infrastructure.

"We have the skills in the region with a capable workforce of 1,800-2,000 people."

The next step for B9 will be to work with the Government to devise economic support and seek funding to work up the design and specifications.

The company will also continue to develop the market opportunities with biomass generators.