The Clean Industry Bonus will provide financial support to offshore wind developers, focusing mainly on areas that need economic investment, including industrial heartlands and coastal regions
The goal is to promote highly skilled jobs and low-carbon manufacturing while driving the country’s clean energy ambitions forward.
About the Clean Industry Bonus
Under this new scheme, offshore wind developers can now apply for funding if they prioritise investment in the UK’s most deprived regions.
The initiative is designed to support areas traditionally linked to oil and gas industries, providing a much-needed boost to local economies and creating skilled employment opportunities such as engineers, electricians, and welders.
The bonus will also encourage developers to build more sustainable factories, including those focused on offshore wind blades, cables, and ports. This move is expected to reduce industrial emissions across the clean energy supply chain and contribute significantly to the UK’s net zero targets.
By incentivising developers to choose less polluting suppliers and technologies, the Clean Industry Bonus hopes to address both the climate crisis and the challenges the renewable energy sector faces.
The ongoing disruption to global supply chains, worsened by the war in Ukraine, has further shown the need for a more secure, homegrown energy supply.
This bonus, which aligns with the UK’s wider goal of becoming a global leader in clean energy, is seen as a key step in reducing dependence on unstable fossil fuel markets while helping keep energy bills down.
The UK’s clean energy sector
The UK already leads Europe in offshore wind capacity, and the government is committed to expanding this sector as part of its vision to deliver a fully clean power system by 2030.
By incentivising investments in low-carbon technology, the Clean Industry Bonus will help accelerate this transformation, creating a more sustainable energy infrastructure and supporting economic growth in regions that benefit the most.
Private investment in the UK’s clean energy sector has seen impressive growth. Since July, the government has facilitated £34.8 billion in private investments, including a £1 billion turbine contract awarded to Siemens Gamesa for the East Anglia TWO offshore wind farm
This contract, which includes blade production at Siemens’ Hull factory, is expected to create more than 1,300 jobs in the region, further cementing the role of offshore wind in driving local employment.
The Clean Industry Bonus will be available for offshore wind projects, with an initial £27 million per gigawatt of project capacity. This means that developers who commit to building 7 to 8 gigawatts of offshore wind capacity could access up to £200 million in funding. The funds will be allocated competitively, with the results expected to be announced in the summer.
A greener future
As part of its Plan for Change, the government aims to use this financial incentive to promote growth in industrial regions across the UK, particularly in areas like Blyth, Hull, and Teesside. Historically tied to heavy industry, these regions are now set to become key players in the country’s green energy future.
The UK’s offshore wind industry already supports thousands of jobs, and the government estimates that there is potential to triple the number of jobs in the sector by the end of the decade. The Clean Industry Bonus is expected to play a major role in achieving this target by driving private investment into manufacturing turbine foundations, blades, cables, and other critical components.
Along with supporting offshore wind, the UK government is advancing its carbon capture and storage industry, which is expected to create thousands of jobs in regions like the North West and Teesside. As the offshore wind sector continues to grow, it will be essential to foster a sustainable and resilient supply chain to support the ambitious goals of the UK’s Industrial Growth Plan.
