The UK government has opened its £160m Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS) today as part of a wider package of measures to bolster its net zero aims.
The long-anticipated fund will be used to support port infrastructure and secure the UK’s lead in the new technology.
The launch comes as part of the government’s ‘Powering Up Britain – Energy Security Plan’, which it describes as an “ambitious” proposal to “scale up affordable, clean homegrown power and build thriving green industries in Britain”.
The package includes a new solar taskforce to support more PV on the grid, backing for the first tranche of green hydrogen projects under the government’s £240m Net Zero Hydrogen Fund, and a plan to invest over £380m in electric vehicle charging infrastructure.
Chancellor Jeremy Hunt will meanwhile unveil an updated Green Finance Strategy to mobilise the billions of private investment needed for net zero and nature recovery. The government plans to announce a series of “investment roadmaps” signposting opportunities in offshore wind, hydrogen, carbon capture and heat pumps.
The government’s green package also includes a number of existing policies including the launch of the fifth Contracts for Difference (CfD) round, a £205m auction to support energy infrastructure and the first of the contests to be held annually.
It reiterates its plan to speed up the planning process for solar and offshore wind projects, with new set of revised Energy National Policy Statements put out for consultation. The Electricity Networks Commissioner has also been tasked with investigating what can be done to speed up deployment of network infrastructure, and a consultation has been launched today to ensure communities can benefit from development of new network infrastructure in their area.
The report also contains the government’s formal response to Chris Skidmore MP’s independent Net Zero Review, addressing 23 of the 25 recommendations for 2025.
Prime Minister Rishi Sunak said: “When global energy supplies are disrupted and weaponised by the likes of Putin, we have seen household bills soar and economic growth slow around the world.
“We have stepped in to shield people from its worst impacts by helping to pay around half the typical energy bill. But we are also stepping up to power Britain and ensure our energy security in the long term with more affordable, clean energy from Britain, so we can drive down energy prices and grow our economy.
“That’s why we’re driving forward plans to boost renewables, revive nuclear and build new thriving industries like carbon capture, which will in turn create good jobs across the country, provide new opportunities for British businesses at home and abroad, and maintain our world-leading action to reach net zero.”
Energy Security Secretary Grant Shapps said: “We have seen over the past year what can happen when global energy supplies are disrupted, and a tyrant like Putin uses energy as a weapon. Access to cheap, abundant and reliable energy provide the foundation stone of a thriving economy with our homes and businesses relying on it to deliver our future prosperity.
“Following our unprecedented cost of living support this Winter, which continues, this plan now sets out how we fix this problem in the long term to deliver wholesale UK electricity prices that rank amongst the cheapest in Europe, as we export our green growth expertise to the world.”
Separately, the state-owned UK Infrastructure Bank has announced it will invest up to £200m in matched funding for short and long duration electricity storage.