Britain’s workers in industrial heartlands such as Teesside, Scotland, South Wales and East Anglia are set to benefit from a major deal crowding in investment for the country’s industrial renewal.
The Government and Great British Energy, the UK’s publicly owned clean power company, have joined forces with industry and The Crown Estate to invest £1 billion in offshore wind supply chains.
The aim is to secure Britain’s renewal through manufacturing facilities and skilled well-paid jobs, and to deliver on the Government’s mission to make the UK a clean energy superpower.
The investment comes after the Spending Review confirmed what the Government claims is “the biggest programme of investment in homegrown energy in history” and forms part of the Government’s upcoming Industrial Strategy.
This investment will power the
next generation of offshore wind in Britain, supporting British innovation from blueprint to blade, by backing the manufacturing of turbines, floating platforms, HVDC cables, and cutting-edge technologies, alongside upgrading vital port infrastructure from Leith and Teesside to Great Yarmouth and Port Talbot.
This investment will unlock thousands of jobs, kickstarting growth in coastal communities and industrial towns, and secure a cleaner, more independent energy future for Britain.
The funding is made up of:
• £300 million announced by Great British Energy in April, which provides upfront public investment to crowd in funding from the private sector into Britain’s industrial regions
• £400 million from The Crown Estate, intended to support new infrastructure, including ports, supply chain manufacturing and research and testing facilities
• £300 million being developed by
the offshore wind industry to match fund Government through the Industrial Growth Plan, to deliver new investments into supply chains such as advanced turbines technologies and foundations and substructures
This takes the pot to £1 billion, building the industries of the future in Britain, such as floating offshore wind, and securing the UK as an attractive investment destination for international investors and existing UK companies.
Funding will support thousands of additional jobs, from the electricians manufacturing the turbines and blades to the engineers responsible for the construction and maintenance of wind farms.
The Government is giving long-term industrial certainty to hardworking British people as part of the Plan for Change.
Energy Secretary Ed Miliband said: “This is an unprecedented collaboration between public and private investors with Great British Energy
crowding in millions of private sector investment from industry and The Crown Estate, to ensure that British companies and workers win the global race for clean energy.
“We are witnessing the coming of age of Britain’s green industrial revolution as we build this new era of clean energy abundance, helping deliver new jobs, energy security and lower household bills through our Plan for Change.”
The funding comes as Great British Energy has announced that leading public finance and investment institutions have come together to accelerate the deployment of funding, supporting domestic supply chain development for offshore wind projects.
Great British Energy will bring together the National Wealth Fund, The Scottish National Investment Bank, The Crown Estate, Crown Estate Scotland and The Development Bank of Wales, agreeing to develop
a unified public finance ‘ecosystem’ to build Britain’s offshore wind supply chains.
The Government will also allocate up to £544 million from its Clean Industry Bonus, which provides funding to offshore wind developers for prioritising their investment into some of Britain’s most deprived communities, and in cleaner supply chains.
Funding will go to developers investing in regions such as Scotland, the North East and East Anglia. Subject to the outcome of this year’s renewables auction, industry estimates this could support up to 14,000 jobs, and drive up to £9 billion of private funding into these communities over the next four years. For every £1 spent on the bonus, it is estimated to crowd in £17 of private investment.
This means unlocking private sector investment into manufacturers of electrical equipment, heavy steel products, upgraded port facilities and the high-tech components needed to build floating and fixed offshore wind farms.