The UK government is more than doubling its funding for the Clean Industry Bonus, a scheme aimed at boosting offshore wind development, following a surge in industry interest. The move comes just days after Danish energy giant Ørsted canceled a major UK offshore wind project due to rising costs.
On Friday, the government announced it would raise the Clean Industry Bonus budget from £200 million ($265 million) to £544 million ($722 million). The scheme offers financial incentives to offshore wind developers who invest in cleaner supply chains or in economically struggling areas, such as ex-industrial towns, coastal communities, and former oil and gas hubs.
Energy Secretary Ed Miliband said the expansion reflects strong demand. “Hundreds of bids have shown that there is a real appetite from industry to help deliver our clean energy goals while supporting communities across the country,” he said.
Ana Musat, Executive Director of Policy at RenewableUK, welcomed the funding increase. “This additional funding could unlock billions in private investment for new UK factories that produce key offshore wind components,” she said. “A stronger domestic supply chain will help deliver future wind projects at lower costs for consumers.”
The boost in funding coincides with Ørsted’s decision to halt its Hornsea 4 offshore wind project. The company cited economic challenges, including rising supply chain costs, high interest rates, and increased execution risks.
Ørsted Group President and CEO Rasmus Errboe said the project’s financial outlook had worsened. “The combination of increased costs and risks has weakened the project’s value,” he noted.
Despite setbacks, the UK remains committed to becoming a global leader in clean energy, with offshore wind playing a central role in its strategy.
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