It is this cluster of about 340 firms that lies at the heart of Peterborough's aspiration to become the environmental capital for the UK and which has inspired plans to create the Green Quarter and which fuelled the recent launch of the Eco Innovation Centre, in Peterscourt, designed to nurture new enterprises and help them grow to become the city's key companies of the future.

Director of Green Ventures, Phil Newby, who is spearheading the Green Quarter initiative, said: "This development will happen. There is a massive amount of will among politicians, council officers and the larger environment organisations who are full square behind it."

He added: "The credit crunch has slowed the UK's commercial market and that combined with the time it is taking to work through the development brief for the area is pulling the scheme back.

"I had hoped to see it ready for 2011 but I think it is going to be more like 2012 but it will happen."

Read more from our feature:
Future Peterborough: Regeneration special in association with Opportunity Peterborough - peterboroughtoday.co.uk/futurepeterborough.
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He added: "The Station Quarter development will cover a 22-hectare site, which is an enormous area of land and is right at the heart of the city and is highly visible to visitors.

"At the moment the site looks run down and this shapes the perception of Peterborough for visitors and people who live and work here.

"Developing it will help change the way we all feel about Peterborough and it will be a demonstration of our intentions to be the UK's environment capital. There is also the possibility of a link between this and the planned university."

Chief executive of Peterborough Environment City Trust (PECT) Hugh Cripps said: "The plans for the Green Quarter and the South Bank are vital for the ongoing development of Peterborough and forwarding the city's ambition to become the UK's Environment Capital.

"The Carbon Challenge on the South Bank Glebe Road site will see 450 eco-friendly homes built, and this in addition to the Green Quarter will provide further tangible, physical proof that Peterborough is the place to come for the environment.

"The Green Quarter will be the first thing many people arriving in the city will see – it will be a real gateway to showcase our environmental expertise.

"This development will put Peterborough on the map in the same way that Cambridge is known for its science and technology parks. It will encourage investment in the city, drive forward sustainable growth, strengthen the local and regional economy and bring real environmental improvements to local communities across Greater Peterborough."