UK

Government investment targeted at clean energy manufacturing and skilled jobs

Developers who drive investment in deprived areas can bid for financial support through the Clean Industry Bonus.

Firms can bid for funds if they are investing in deprived areas
Firms can bid for funds if they are investing in deprived areas (Ben Birchall/PA)

The Government has announced new investment aimed at supporting clean energy manufacturing and skilled jobs.

Ministers said offshore wind developers can now bid for financial support if they drive investment in the UK’s most deprived regions.

Applications have opened for a so-called Clean Industry Bonus, offering financial support for offshore wind developers, on condition they prioritise their investment in areas including traditional oil and gas communities.

The support 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.

Energy Secretary Ed Miliband said: “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.

“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.”

Ed Miliband said the scheme is part of the Government’s Campaign for Change
Ed Miliband said the scheme is part of the Government’s Campaign for Change (James Manning/PA)

Dan McGrail, chief executive of RenewableUK, said: “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.”

Dhara Vyas, Energy UK chief executive, said: “Offshore wind is set to become the backbone of a decarbonised power system.

“To build an industry that is resilient to supply chain challenges, we need a framework that supports sustainable deployment, while fostering investment in the UK’s industrial heartlands.

“The Clean Industry Bonus will help to unlock economic growth, create job opportunities, and maintain the UK’s position as a global leader in offshore wind.”

Up to £200 million of funding could be made available, with an initial £27 million per Gigawatt of offshore wind projects.

Funding results will be announced by the Energy Secretary in the summer.

Unite general secretary Sharon Graham said the bonus scheme “is a baby step in the right direction but the funding on offer so far is nowhere near enough to transform offshore wind manufacturing in the UK”.

She added: “If the Government is going to get anywhere close to its targets on domestic wind manufacture and green jobs it will need to come up with much more ambitious levels of investment and make sure that it delivers.”

TUC general secretary Paul Nowak said: “The Government is serious about growing a manufacturing base for renewable energy in the UK.

“During 14 years of Tory mismanagement, industrial communities have been starved of investment and decent jobs.

“We should be making the towers, foundation and cables for zero carbon energy here, instead of paying other countries and importing them.”