National Wealth Fund to double investment pace with focus on clean energy and green steel

"The National Wealth Fund has set out plans to sharply accelerate investment, committing up to £5 billion a year of public money into clean energy, industrial transformation and strategic infrastructure as part of a more focused growth strategy. Under the new approach, the fund will prioritise ten sectors, with clean energy at the core. These include energy storage, electricity networks, nuclear power, hydrogen, and carbon capture and storage, alongside ports, green steel manufacturing, transport infrastructure, regional regeneration, battery manufacturing and the electric vehicle supply chain."

"Oliver Holbourn, chief executive of the National Wealth Fund, said the strategy was designed to unlock "growth opportunities on the clean energy pathway" and position the UK to be more resilient and self-sufficient in a rapidly changing global economy. The fund, which was rebranded in 2024 from the UK Infrastructure Bank, has a core capital budget of almost £28 billion."

The National Wealth Fund will commit up to £5 billion a year to clean energy, industrial transformation and strategic infrastructure, prioritising ten sectors with clean energy central. Priority sectors include energy storage, electricity networks, nuclear power, hydrogen, carbon capture and storage, ports, green steel, transport infrastructure, regional regeneration, battery manufacturing and the electric vehicle supply chain. The fund holds almost £28 billion of core capital, has invested just over £8 billion in the past five years and attracted £17 billion of private finance. The remaining capital is planned for deployment over the next five financial years, targeting £3 of private investment per £1 of public funding, with estimated support for about 200,000 jobs and over £100 billion of economic activity. An exceptional loan facility of up to £36.6 billion for Sizewell C is included and a further 15 areas, including artificial intelligence and critical minerals, will be considered.

Read at Business Matters