Chancellor of the Exchequer Jeremy Hunt is set to announce an additional £120M government investment for the Green Industries Growth Accelerator (Giga) fund in the Spring Budget on Wednesday, 6 March.
The Giga fund is an investment program aimed at expanding low-carbon manufacturing supply chains in the UK.
The government has confirmed that the total fund, now increased to nearly £1.1bn, will be distributed across various clean energy sectors. £390M will be allocated to expanding UK-based supply chains for electricity networks and offshore wind sectors, while approximately £390M will support carbon capture, utilization, and storage (CCUS), as well as hydrogen sectors.
The remaining £300M, previously announced, is designated for the UK production of High-Assay Low-Enriched Uranium (HALEU), necessary for powering advanced nuclear reactors.
In the Autumn Statement last November, Hunt initially announced £960M for the Giga fund.
The Giga fund is part of a larger £4.5bn funding package designed to support private sector investment in strategic manufacturing sectors across the UK.
RenewableUK, the UK’s leading renewable energy trade association, has welcomed the Treasury’s announcement. They believe that Giga could unlock billions in private investment for clean energy supply chains, providing products and services for green projects.
Last month, RenewableUK wrote to Hunt, outlining four key measures to secure green jobs and investment in the clean energy sector. These included a commitment of up to £400M of Giga funding to co-invest with the private sector to grow the offshore wind supply chain.
RenewableUK is now calling for additional measures to accelerate the rollout of renewables. In its submission to the Treasury, it emphasized the need to increase investment in port infrastructure to support the manufacture and assembly of large offshore turbines. According to the association, up to 11 UK ports need to be transformed into industrial hubs to enable the large-scale deployment of floating wind technology.
The energy industry is also urging the government to set an ambitious budget and parameters for this summer’s Contracts for Difference (CfD) auction to maximize new clean energy capacity.
These requests follow last year’s disappointing auction, which failed to attract any offshore wind bids.
RenewableUK is also calling on the Chancellor to provide tax relief for investors in clean energy projects, supply chains, and training schemes to keep the UK competitive internationally. This comes as incentives offered by the USA and the EU are making those regions increasingly attractive for investment. Additionally, the association recommends increasing funding for research and development in innovative technologies such as floating offshore wind, tidal stream, green hydrogen, and energy storage.