Industrial heartlands and coastal areas will receive a major economic boost as the UK Government backs renewable energy firms investing in industrial communities.
The application window has opened for the Clean Industry Bonus, which provides financial support for offshore wind firms on the condition they prioritise their investment in areas that need it most, including traditional oil and gas communities.
The support also rewards developers who build more sustainable low-carbon factories, offshore wind blades, cables and ports to reduce industrial emissions across the clean energy supply chain.
UK at the forefront of tackling the climate crisis and delivering clean energy
By encouraging renewable energy firms to use less polluting suppliers, the bonus will help tackle the climate crisis while also addressing supply chain blockages in renewable technologies driven by Russia’s invasion of Ukraine.
This supports the UK industry in the transition to clean, secure, homegrown energy that Britain controls.
How can renewable energy firms deliver on this growth?
The UK produces more offshore wind than any other European country, making it the backbone for plans to deliver a clean power system by 2030 and become a clean energy superpower.
This bonus will help accelerate the drive for clean power – incentivising renewable energy firms to build the infrastructure the country needs to end reliance on unstable fossil fuel markets and help keep energy bills down for good.
Since July, the government has seen £34.8bn of private investment into the UK’s clean energy industries. For example, the government launched its carbon capture and storage industry in November, supporting 4,000 jobs in the North West and Teesside.
“We are backing our proud manufacturing, coastal and oil and gas communities with good jobs, skills and private sector investment – delivering on the government’s Plan for Change,” explained Energy Secretary Ed Miliband.
“This is our clean energy superpower mission in action, kickstarting growth, delivering energy security and transforming towns and cities as part of the transition from the ports of Nigg and Leith to the manufacturing hubs of Blyth and Hull.”
Supporting employment in the offshore wind industry
The UK is already home to the world’s first floating offshore wind farm and has the highest deployment of offshore wind in Europe.
As a result, the UK’s offshore wind firms are supporting thousands of highly skilled jobs across the country.
Steve Foxley, Chief Executive of the Offshore Renewable Energy (ORE) Catapult, explained: “This news is an important signal from government to industry of intent to grow our offshore wind sector in a way that benefits both our climate and our economy, supporting expansive regional job creation and bolstering national energy security.”
Dan McGrail, CEO of RenewableUK, added: “The offshore wind industry already employs over 34,000 people in the UK, but there’s an opportunity to treble this number by the end of the decade if we grow the sector’s supply chain.
“Government initiatives like the Clean Industry Bonus, coupled with industry initiatives to support innovation and the upcoming Industrial Strategy, could drive hundreds of millions of pounds of private investment into new manufacturing.”
The bonus will come with an initial £27m per gigawatt of offshore wind projects. That means if developers commit to 7-8 GW of offshore wind, up to £200m of funding could be made available.
Funding will be allocated competitively based on the results announced by the Energy Secretary in the summer.
