NWF targets CCS and hydrogen in ‘cleaner, greener’ investment plan

CARBON capture and storage (CCS) and hydrogen are among ten industrial sectors earmarked by the National Wealth Fund (NWF) as offering the biggest growth potential in the next five years, under its latest investment strategy.

The NWF’s 2030/31 plan sets out how it will deploy its remaining £19.4bn (US$26bn) of capital, which it hopes will drive more than £100bn of fresh investment and support more than 200,000 jobs.

Clean energy makes up the bulk of the investment, with a focus on ports and supply chains, CCS, hydrogen, battery manufacturing, steel, grid infrastructure and nuclear. Further investment sectors include emerging technologies such as semiconductors, artificial intelligence and quantum technologies.

Oliver Holbourn, CEO of the NWF, 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.”

CCS and nuclear focus

CCS features prominently, with the fund supporting major projects including the HyNet cluster in northwest England and north Wales, and the East Coast Cluster across Teesside and the Humber.

The strategy will also continue the fund’s support for nuclear, with investment in both fission and fusion. Last year, the NWF said it would provide a loan of up to £36.6bn for the construction of Sizewell C.

Regional jobs boost

The NWF has already earmarked around £8.4bn to clean energy and infrastructure projects, supporting the creation of around 67,000 jobs. The strategy aims to almost triple this amount, targeting the UK’s main industrial regions including the Scottish Highlands (offshore wind), the North East (CCS) and southwest (battery manufacturing).

Energy secretary Ed Miliband said: “Thanks to the certainty of the government’s clean energy superpower mission and public investment like this – the industry is responding with record investment – meaning better jobs for people across our country.”