Industrial heartlands and coastal regions are set to receive a significant economic boost as the UK government supports renewable energy firms investing in industrial communities. This initiative aims to create skilled jobs as part of the government’s Plan for Change.
The application window has now opened for the Clean Industry Bonus, a financial incentive for offshore wind developers that prioritise investment in key regions, including traditional oil and gas communities. The initiative is designed to support highly skilled roles such as engineers, electricians, and welders.
The scheme also rewards developers that establish low-carbon manufacturing facilities, including offshore wind blade and cable production sites, as well as port infrastructure. By promoting more sustainable industrial practices, the initiative seeks to lower emissions across the clean energy supply chain.
By encouraging offshore wind developers to source materials from less polluting suppliers, the bonus will help reduce industrial emissions and address supply chain disruptions in renewable technologies.
The UK is currently the largest producer of offshore wind power in Europe, positioning it at the core of the government’s strategy to establish a fully clean power system by 2030. The Clean Industry Bonus aims to accelerate renewable energy deployment by incentivising infrastructure development that reduces dependence on volatile fossil fuel markets and contributes to long-term energy affordability.
Since July, the UK government has secured £34.8bn in private investment for clean energy projects. In November, the government launched its carbon capture and storage (CCS) industry, expected to create 4,000 jobs in the North West and Teesside.
Meanwhile, ScottishPower awarded a £1bn turbine contract for its East Anglia TWO offshore wind farm to Siemens Gamesa, which will manufacture blades at its Hull facility, employing over 1,300 people in Humberside.
The UK is home to the world’s first floating offshore wind farm and leads Europe in offshore wind deployment, supporting thousands of highly skilled jobs nationwide.
The Clean Industry Bonus follows last year’s record-breaking renewables auction, which secured contracts for the largest and second-largest offshore wind farm projects in Europe.
The funding structure includes an initial allocation of £27m per gigawatt of offshore wind capacity. If developers commit to 7–8 GW of projects, up to £200m in government funding could be made available.
Funding will be awarded through a competitive process, with successful applicants announced by the Energy Secretary in the summer.
UK 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.”
