The National Wealth Fund (NWF) has set out a five-year plan aimed at mobilising more than £100bn of investment into UK infrastructure, industry and supply chains by 2030/31.
The government said the plan will support or create over 200,000 jobs and help deliver the UK’s clean energy transition, reports New Civil Engineer, sister publication of Construction News.
Set up as the government’s principal investor and policy bank, the NWF has £27.8bn of core capital.
It has already deployed £8.4bn and committed a further £36.6bn to the Sizewell C nuclear project.
Under the new plan, the remaining £19.4bn will be invested by 2030/31, alongside private finance to reach the £100bn target.
The strategy outlines three priorities:
- Backing technologies that reduce emissions and lower energy bills.
- Delivering more regional investment, supported by a newly launched Regional Project Accelerator.
- Strengthening the UK’s sovereign supply chains in areas such as critical minerals, green steel and defence.
The NWF said it will focus on 25 sectors, including 10 priority areas where it expects the greatest impact.
These are: ports and supply chains, carbon capture, hydrogen, battery manufacturing, electric vehicles, steel, energy storage, the power grid, nuclear, and transport infrastructure.
It aims to commit £5.8bn across the first five of these, subject to policy and investable opportunities.
A further 15 sectors will be treated as growth areas.
These include artificial intelligence, semiconductors, quantum technologies, life sciences, aerospace, offshore wind, retrofit, EV charging and heat networks.
To support delivery, the fund will provide debt, guarantees and equity.
The NWF said its risk appetite had increased following changes to Treasury rules, enabling quicker deal-making and more ambitious financing.
The fund has committed £4.5bn across more than 30 investments since its relaunch, tripling its deployment rate.
Examples include co-investment in the Pentland Floating Offshore Windfarm with GB Energy and the Scottish National Investment Bank, and a £28.6m stake in the Peak carbon capture cluster.
It is also providing support to Sizewell C.
NWF chief executive Oliver Holbourn said: “We will be going further and faster to drive more than £100bn into the economy, fully deploying our capital over the next five years to help drive economic growth, accelerate the transition to clean energy, transform communities with place-based investments and strengthen our self-sufficiency, security and resilience.”
The government said the plan complements wider efforts to grow the clean energy sector. Ministers have cited the potential for high-value jobs and export growth. Forecasts suggest the UK’s clean energy workforce could nearly double by 2030.
Sector breakdown
The NWF expects to support grid upgrades through guarantees or debt, with investment needs estimated at £58bn by 2035. Its role will depend on decisions by Ofgem and the Department for Energy Security and Net Zero (DESNZ).
For battery storage and long-duration energy storage, the fund will offer finance to fill market gaps, with equity only in exceptional cases. It will work alongside DESNZ’s Cap and Floor framework.
Offshore wind support will focus on debt and guarantees, with limited equity involvement, given GB Energy’s lead role in the sector.
Carbon capture and hydrogen efforts will centre on the HyNet cluster in the North West and North Wales, and the East Coast Cluster in Teesside and the Humber.
For hydrogen, the fund will back government-supported projects and assess related supply chains and transport.
Nuclear support includes an existing commitment to Sizewell C and potential equity in small modular reactors aligned with the UK’s forthcoming advanced nuclear framework.
The NWF also intends to support solar and heat networks, though near-term direct funding for the latter is likely to remain limited. It will work with local authorities through the Regional Project Accelerator to prepare viable schemes.
Regional pipeline and partnerships
The NWF said its place-based work aims to plug gaps in local authority expertise and financing. It will operate on a “no wrong door” basis with public financial bodies including the British Business Bank and UK Export Finance.
A new strategic partnership with Greater Manchester Combined Authority includes a pipeline of 10 heat network projects targeting a 2038 decarbonisation deadline.
The NWF stressed that much of its delivery depends on wider policy changes. These include future allocation rounds for long-duration storage, carbon capture, hydrogen and the Contracts for Difference scheme, as well as regulatory decisions by Ofgem.
The fund has framed its approach as a roadmap and call to action for private investors, local leaders and policymakers.
It said investment will be conditional on broader public programmes and policy support.
Government backing
Energy secretary Ed Miliband said: “Clean energy is not just about energy sovereignty, it is about bringing back the good industrial jobs that have been denied to our country for too long.”
Chancellor of the exchequer Rachel Reeves added: “When I became chancellor, I created the NWF to drive growth.
“This new plan will go even further with £100bn for our communities – delivering much-needed investment as we push to deliver our modern Industrial Strategy and build a Britain that works for all.”
By 2050, the NWF expects its investments to have supported over 200,000 jobs and saved 500Mt of CO₂e. It aims to support the government’s economic and net-zero goals while delivering a long-term return for the taxpayer.
Read More
Colin Marrs