Released November 29, 2023 | GALWAY, IRELAND
en
Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The U.K. government is making £960 million (US$1.2 billion) available to the clean energy sector to bolster manufacturing in a wide number of sectors including offshore wind, electric vehicles (EV) and hydrogen.
The funding, known as the Green Industries Growth Accelerator, forms part of a larger £4.5 billion (US$5.6 billion) investment into British manufacturing, which will see £2 billion (US$2.5 billion) going to the car industry and another £975 million (US$1.2 billion) to aerospace and £520 million (US$651 million) to life sciences. The clean energy boost comes just days after the government committed to significant increases in its financial support mechanism, Contracts for Difference (Cfd), for offshore wind projects. In September, Industrial Info reported that the U.K. had failed to receive a single bid in its 2023 offshore windfarm auction. Many developers claimed that the strike price offered by the government for power produced was too low and did not take into account higher rates of inflation and a general increase in the costs of construction and supply chain difficulties exacerbated by Russia's war in Ukraine. For additional information, see September 26, 2023, article - U.K. Fails to Attract Any Offshore Wind Bidders.
The full list of technologies that will be supported by the Accelerator include EVs, electricity networks, carbon capture, utilization and storage (CCUS), hydrogen, nuclear and offshore wind. "Britain is now the 8th largest manufacturer in the world, recently overtaking France," said U.K. Chancellor of the Exchequer Jeremy Hunt. "To build on this success, we are targeting funding to support the sectors where the U.K. is or could be world-leading. Our £4.5 billion of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last."
The funding was welcomed by manufacturing organizations and the renewables industry. RenewableUK's chief executive, Dan McGrail, said: "At a time when international competition for investment in clean technology manufacturing is fierce, the Chancellor is right to take a more proactive approach to stimulate green industrial growth. The U.K.'s leadership in areas like offshore wind has given us a strong foundation to build on, with supply chain companies already in place across the country. With the right support...industry estimates that the offshore wind supply chain alone could boost the U.K.'s economy by £92 billion (US$115 billion) by 2040."
With regard to the improved CfD supports, there was a major 66% increase in maximum prices for offshore wind projects, from the current £44 (US$55) per megawatt hour (MWh) to £73/MWh (US$91). There was also a significant 52% increase for floating offshore wind projects, from £116/MWh (US$145) to £176/MWh (US$220), in preparation for the next offshore wind auction, Allocation Round 6 (AR6). The recent failure of the fifth offshore wind auction cast a shadow over the U.K. government's ambitious goal to deploy 50 gigawatts (GW) of offshore wind by 2030. Today, the U.K. has 14 GW of operational capacity--supplying around 15% of its electricity total--with another 7 GW under construction and 6 GW granted subsidies but not necessarily guaranteed to be built. Industrial Info is tracking 44 offshore wind projects at various stages of development in the U.K., worth an estimated US$127 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
RenewableUK's McGrail commented, "There is the potential for the government to attract a record level of private investment in offshore wind projects next year, with at least 10 projects likely to be eligible, able to power 8.5 million homes each year and reduce the U.K.'s need for gas by 39%. The framework they've set out today is a significant step forward in securing this."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The funding, known as the Green Industries Growth Accelerator, forms part of a larger £4.5 billion (US$5.6 billion) investment into British manufacturing, which will see £2 billion (US$2.5 billion) going to the car industry and another £975 million (US$1.2 billion) to aerospace and £520 million (US$651 million) to life sciences. The clean energy boost comes just days after the government committed to significant increases in its financial support mechanism, Contracts for Difference (Cfd), for offshore wind projects. In September, Industrial Info reported that the U.K. had failed to receive a single bid in its 2023 offshore windfarm auction. Many developers claimed that the strike price offered by the government for power produced was too low and did not take into account higher rates of inflation and a general increase in the costs of construction and supply chain difficulties exacerbated by Russia's war in Ukraine. For additional information, see September 26, 2023, article - U.K. Fails to Attract Any Offshore Wind Bidders.
The full list of technologies that will be supported by the Accelerator include EVs, electricity networks, carbon capture, utilization and storage (CCUS), hydrogen, nuclear and offshore wind. "Britain is now the 8th largest manufacturer in the world, recently overtaking France," said U.K. Chancellor of the Exchequer Jeremy Hunt. "To build on this success, we are targeting funding to support the sectors where the U.K. is or could be world-leading. Our £4.5 billion of funding will leverage many times that from the private sector, and in turn will grow our economy, creating more skilled, higher-paid jobs in new industries that will be built to last."
The funding was welcomed by manufacturing organizations and the renewables industry. RenewableUK's chief executive, Dan McGrail, said: "At a time when international competition for investment in clean technology manufacturing is fierce, the Chancellor is right to take a more proactive approach to stimulate green industrial growth. The U.K.'s leadership in areas like offshore wind has given us a strong foundation to build on, with supply chain companies already in place across the country. With the right support...industry estimates that the offshore wind supply chain alone could boost the U.K.'s economy by £92 billion (US$115 billion) by 2040."
With regard to the improved CfD supports, there was a major 66% increase in maximum prices for offshore wind projects, from the current £44 (US$55) per megawatt hour (MWh) to £73/MWh (US$91). There was also a significant 52% increase for floating offshore wind projects, from £116/MWh (US$145) to £176/MWh (US$220), in preparation for the next offshore wind auction, Allocation Round 6 (AR6). The recent failure of the fifth offshore wind auction cast a shadow over the U.K. government's ambitious goal to deploy 50 gigawatts (GW) of offshore wind by 2030. Today, the U.K. has 14 GW of operational capacity--supplying around 15% of its electricity total--with another 7 GW under construction and 6 GW granted subsidies but not necessarily guaranteed to be built. Industrial Info is tracking 44 offshore wind projects at various stages of development in the U.K., worth an estimated US$127 billion in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
RenewableUK's McGrail commented, "There is the potential for the government to attract a record level of private investment in offshore wind projects next year, with at least 10 projects likely to be eligible, able to power 8.5 million homes each year and reduce the U.K.'s need for gas by 39%. The framework they've set out today is a significant step forward in securing this."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
