UK goverment to invest £300m in offshore wind

The UK's Department for Energy Security and Net Zero has announced that it will invest £300 million ($400 million) in UK supply chains for domestic offshore wind.

The public investment complements the £43 billion ($57 billion) of private investment pledged for clean energy projects since July and will be used to de-risk the investment landscape, develop the supply chain and create local jobs.

The funding is being made available through the country’s publicly-owned clean energy company, Great British Energy, and will be spent on offshore wind manufacturing components such as floating offshore platforms and cables.

The initiative forms part of the government’s updated Industrial Strategy, which aims to grow resilience in key sectors such as clean energy, with the ultimate goal of boosting energy security.

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UK Prime Minister Keir Starmer commented on the announcement: "Delivering the Plan for Change means winning the race for the clean energy jobs of the future, which will drive growth and help us reach clean power by 2030. That is why I am bringing forward much-needed investment in our domestic offshore wind supply chains, strengthening our security and creating good jobs for our welders, electricians, and engineers. Let my message to the world go out: come and build the clean energy future in Britain."

Deputy CEO of RenewableUK, Jane Cooper, suggests this funding sends a clear signal of intent to secure jobs and boost competitiveness and is vital to unlocking further co-investment from industry.

Said Cooper: "The Prime Minister’s funding will be critical to ensuring the UK grasps the industrial opportunities in the offshore wind supply chain, at a time of intense global competition for clean energy investment. By nurturing existing UK companies and ensuring we’re a competitive location for international investors, there’s an opportunity to triple our manufacturing capacity over the next decade, adding £25 billion to the UK economy and creating an additional 10,000 jobs in the supply chain.

Richard Sandford, chair of the Offshore Wind Industry Council, is pleased that the government has worked on the Industrial Growth plan for offshore wind together with the industry.

"The offshore wind industry has worked hard to develop a deep understanding of where the UK could secure new supply chain investment and be internationally competitive. We have the opportunity to create thousands of new jobs in the UK, by focusing on advanced turbine technology, foundations and substructures, cables, smart environmental services, operations and maintenance.

"This funding reflects the reality that aspiration needs to be backed with action when it comes to offshore wind supply chain development," Sandford said.

Evidence of action

The news of the investment into offshore wind is one of three particularly significant announcements coming out of the UK this week, demonstrating the government's intention to show leadership in the energy space, as well as leverage existing and new partnerships within the European and global context.

The UK government organised and hosted the Future of Energy Security summit together with the International Energy Agency. The event gathered industry stakeholders from across the world to address the emerging risks to energy security, such as supply chain disruptions, extreme weather events, and geopolitical tensions.

The summit emphasised the need to foster predictability, diversification of supply and cooperation, with cooperation being emphasised in the discussions hosted on day one of the event.

UK Energy Secretary Ed Miliband MP emphasised the benefits of cooperating on the basis of shared interests, stating: "I do believe that we share a fundamental belief that shared challenges invite shared solutions. Multilateral co-operation can make us stronger not weaker – in our own individual national interest."

Also in the news this week was the announcement that the UK government and Eni had reached financial close on the Liverpool Bay CCS project.

The financial close allows the project to move into the construction phase, which will further unlock investments in local supply chain contracts.

Commented Eni's CEO Claudio Descalzi: “The strategic agreement with the UK Government paves the way for the industrial-scale development of CCS, a sector in which the United Kingdom reaffirms its leadership thanks to the promotion of a regulatory framework that aims to strengthen the development of CCS and make it fully competitive in the market."