Rebranding of UK Infrastructure Bank to National Wealth Fund Announced
The UK National Wealth Fund (NWF) has announced plans to significantly expand its investments, committing at least £5.8 billion by 2030 across key sectors such as hydrogen, carbon capture, ports and supply chains, gigafactories, electric vehicle supply chains, and steel. This move is aimed at accelerating industrial decarbonisation and supporting the clean energy transition [1][2].
One of the NWF's recent investments includes a £28.6 million equity injection into the Peak Cluster project, which aims to develop a carbon dioxide transport pipeline crucial for carbon capture and storage (CCS) infrastructure [3]. This investment is part of broader efforts to modernise hard-to-decarbonise industries like cement and lime, create jobs, and reduce barriers for private investment in CCS projects.
In addition, the NWF has pledged a term loan of up to £36.6 billion to finance the Sizewell C nuclear power station construction, a move aimed at enhancing the UK’s energy security and low-carbon electricity supply [4]. This loan is supported by additional financial capacity from HM Treasury, allowing the NWF to continue investing its existing £27.8 billion capacity in sectors aligned with government growth and clean energy objectives.
The NWF also plans to use its sector insight and investment expertise to unlock billions of pounds for UK projects, and will continue to provide commercial and financial advisory services and market lending to local authorities [2]. The Fund is also expected to expand its team and boost its private sector investments [5].
Meanwhile, Chancellor Rachel Reeves has re-launched the UK Infrastructure Bank, which was established in 2021 and is based in Leeds [6]. The Bank, with a mission to tackle climate change and support regional and local economic growth, will act as a co-investor alongside private businesses [7].
The announcements have been met with enthusiasm from businesses like Aviva, with CEO Amanda Blanc expressing readiness to invest more to boost growth and create jobs, while also delivering net zero [8]. Aviva has also called for closer working between government and business and a greater pace to turn good ideas into investable projects [9].
The Treasury has also announced an additional £1.5 billion investment in greener upgrades, including clean steel, gigafactories, carbon capture, and green hydrogen [10]. This investment is considered a significant step in the right direction by Aviva [11].
The re-launch of the UK Infrastructure Bank and the expansion of the National Wealth Fund mark important strides in the UK government's plans to establish a 'UK energy superpower' and deliver on its mission to secure sustainable growth, rebuild Britain, and make every part of the country better off [12].
References:
- Financial Times
- Government Press Release
- BBC News
- BBC News
- Government Press Release
- Government Press Release
- Government Press Release
- Aviva Press Release
- Aviva Press Release
- Government Press Release
- Aviva Press Release
- Government Press Release
- The UK National Wealth Fund (NWF) has announced plans to expand its investments, committing over £6 billion by 2030 in various business sectors, including hydrogen and carbon capture, with a view to decarbonize industries and support clean energy transition.
- In addition to its current investments, the NWF has pledged a term loan of up to £36.6 billion to finance the construction of the Sizewell C nuclear power station, an move aimed at enhancing the UK’s energy security and low-carbon electricity supply. This loan, supported by additional financial capacity from HM Treasury, aligns with the government's growth and clean energy objectives.
