NWF to Double Investments in Green Energy, Creating 200,000 Jobs

UK’s National Wealth Fund Aims to Double Green Investments

The UK’s National Wealth Fund (NWF) is embarking on an ambitious plan to significantly ramp up its investments in clean energy and other growth sectors. With a targeted annual investment of up to £5 billion, the fund is channeling taxpayer money into vital areas such as energy storage, nuclear power, hydrogen, and carbon capture and storage. This strategic shift is part of the NWF’s broader goal to accelerate growth opportunities on the clean energy pathway.

Oliver Holbourn, NWF’s chief executive, highlighted ten priority sectors that include ports, green steel manufacturing, and the electric vehicle supply chain. The fund, which was rebranded from the UK Infrastructure Bank in 2024, has a budget of nearly £28 billion. Over the last five years, it has invested just over £8 billion, with half directed towards clean energy, and aims to fully deploy its budget within the next five fiscal years. Holbourn emphasized the importance of clean energy as a core component of their portfolio.

Holbourn explained that the fund intends to leverage private finance, targeting a £3 investment from private entities for every £1 from the taxpayer. NWF’s investments are expected to create or support up to 200,000 jobs, with the overall aim of driving more than £100 billion into the UK economy. This includes a notable loan of up to £36.6 billion for the Sizewell C nuclear plant.

Beyond the priority sectors, the NWF will also explore investment opportunities in 15 additional areas, including artificial intelligence and critical minerals. Holbourn noted the fund’s focus on enhancing sovereign and strategic capabilities to boost national self-sufficiency, resilience, and security.

Operating independently from the government, the NWF is based in Leeds and is owned by the Treasury. Its investments are designed to drive growth and clean energy missions while providing a return for taxpayers and attracting private capital. According to Holbourn, the fund is prepared to assume greater risks than other commercial financial bodies, with the aim of achieving underlying profitability during the plan period.

The fund’s investment strategy involves a minimum ticket size of £25 million for equity and £50 million for debt. However, to efficiently allocate its capital, it plans on an average ticket size exceeding £100 million, given its capacity to make around 40 investments annually.

High voltage cables being laid by SSE

STUART NICOL/SSEN /PA

To date, the NWF has made approximately 70 investments, including significant contributions to Britain’s electricity transmission network upgrades. This includes an £800 million financial guarantee to support SSE in northern Scotland and a £600 million commitment to aid Scottish Power in enhancing projects across Scotland and reinforcing the grid between Scotland and England.

In the energy storage sector, the NWF has invested in lithium-ion battery projects and innovative long-duration storage technologies. Notably, it supports Highview Power’s initiative to develop one of the largest liquid air energy storage sites globally. The fund has also backed Cornish Lithium’s efforts to produce battery metals and Cornish Metals’ revival of an old tin mine.