Renamed UK Infrastructure Bank to National Wealth Fund
UK National Wealth Fund Expands Investment in Clean Energy and Infrastructure
The UK National Wealth Fund (NWF) is expanding its scope and scale, targeting substantial investments in low-carbon technologies and infrastructure to accelerate the country's clean energy transition and industrial decarbonisation goals by 2030.
The NWF, which currently stands at £27.8bn and is expected to grow further, will focus on key sectors such as carbon capture, hydrogen, offshore wind, and nuclear power. Notable investments include a £28.6 million equity investment in the Peak Cluster project to develop a carbon dioxide transport pipeline, supporting the decarbonisation of hard-to-abate industrial sectors like cement and lime.
The NWF will also provide up to £36.6 billion in a term loan to finance the construction of the Sizewell C nuclear power station, enhancing the UK's reliable low-carbon electricity supply and energy security.
To maximize impact, the NWF is empowered to borrow directly from capital markets to increase financial firepower and is expanding its financial tools to attract institutional investors such as pension funds and insurers.
The NWF's investments are expected to support 12,500 jobs and drive growth in regions such as Derbyshire, Staffordshire, and the North West, aligning with the government's clean energy transition and industrial renewal agenda.
John Flint, CEO at the NWF, has been entrusted with the responsibility of leading the fund. The UK Infrastructure Bank, established in 2021 with its main headquarters in Leeds, will continue to provide commercial and financial advisory services and market lending to local authorities.
Chancellor Rachel Reeves, who re-launched the UK Infrastructure Bank at the National Investment summit, believes these investments are a significant step in the right direction towards securing sustainable growth, rebuilding Britain, and making every part of the country better off.
Amanda Blanc, CEO at Aviva, has expressed enthusiasm for the new initiative and is ready to invest more to boost growth and create jobs. The collaboration between the NWF and other institutions like Great British Energy, the Scottish National Investment Bank, The Crown Estate, Crown Estate Scotland, and the Development Bank of Wales aims to create a clear funding pathway for offshore wind projects, accelerating renewable power deployment.
The Treasury also plans to invest a further £1.5bn in greener upgrades including clean steel, gigafactories, carbon capture, and green hydrogen. The government's central mission remains to establish a 'UK energy superpower'.
However, the additional £5.8bn falls short of former pledges to capitalise the NWF with £7.3bn. Despite this, the NWF will build on the strong foundations laid by the UK Infrastructure Bank to unlock billions of pounds of private finance for projects across the UK, using sector insight and investment expertise.
Amanda Blanc, CEO at Aviva, considers the National Wealth Fund announcement a significant step in the right direction, emphasizing the need for closer working between government and business and a greater pace to turn good ideas into investable projects.
- The UK National Wealth Fund (NWF) is focusing its substantial investments on key business sectors such as carbon capture, hydrogen, offshore wind, and nuclear power, aiming to drive growth and create jobs while advancing the country's clean energy transition.
- To further boost investment, the NWF is empowered to borrow directly from capital markets and is expanding its financial tools to attract institutional investors like pension funds and insurers, with companies like Aviva expressing enthusiasm for the initiative.
