Scottish and Southern Energy plc and Mitsubishi have signed a strategic agreement to co-operate on low carbon energy developments.

The two companies will explore a range of technologies including offshore wind farms, advanced technology for smart electricity grids and low carbon vehicles, carbon capture and storage and high-efficiency power generation.

The agreement builds on SSE's establishment, last October, of a Centre of Engineering Excellence in Renewable Energy - in partnership with the University of Strathclyde - and should lead to up to 100 additional new highly-skilled, engineering-based jobs being created at the Centre. This is expected to grow to up to 1,000 jobs over five years.

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First Minister Alex Salmond said: "I am very pleased to welcome this exciting new partnership between Mitsubishi Heavy Industries, an industrial giant with historic links to Scotland, and Scottish and Southern Energy, the largest generator of renewable electricity in these islands.

"I'm also delighted that just nine months after Glasgow was confirmed as the location for the new Centre of Engineering Excellence, SSE expects up to 1,000 people to be employed here within five years, delivering a further boost to the city and to Scotland's growing low-carbon economy."

Colin Hood, Chief Operating Officer of SSE, said: "This agreement represents one of the most significant industrial partnerships to be established in Scotland since the heyday of North Sea oil - and low carbon energy represents Scotland's biggest economic opportunity since then.

"As the UK's broadest-based energy company, SSE has extensive interests and opportunities in low carbon developments, and our partnership with Mitsubishi should help us to make the most of them."

Mitsubishi and SSE are working together to become strategic partners in low carbon electricity production and management and in low carbon transport technology. They hope to establish joint development projects, ventures, investments and supply arrangements through this agreement.

(GK/KMcA)