UK Chancellor Allocates £5.8Bn to Boost Green Hydrogen and Clean Energy

The UK government has pledged £5.8 billion to accelerate clean energy projects, including green hydrogen, carbon capture, and advanced manufacturing, aiming to drive private investment and create high-skilled jobs.

Major Investment in Clean Energy

Chancellor Rachel Reeves has announced a £5.8 billion investment from the National Wealth Fund (NWF) to boost key industries struggling to secure private finance. The funding will support green hydrogen, carbon capture, green steel, gigafactories, ports, and advanced manufacturing projects across the UK.

By increasing the NWF’s capital limit from £4.5 billion to £7 billion, the government hopes to attract over £70 billion in private investment, accelerating the transition to cleaner, more sustainable energy sources.

Chancellor Reeves highlighted the initiative’s potential to create high-skilled, high-paid jobs across the country, stating:

“By directing tens of billions of pounds into the UK’s industrial strengths, we’ll deliver the high-skilled, high-paid jobs of the future in every corner of the country.”

Positioning the UK as a Clean Energy Leader

Energy Secretary Ed Miliband reinforced the government’s commitment to making Britain a ‘clean energy superpower’, ensuring energy security and economic growth.

The Hydrogen Energy Association (HEA) has welcomed the funding but has called for more clarity on how hydrogen projects will access the capital. Hydrogen is seen as a crucial part of the UK’s net-zero ambitions, offering a sustainable alternative to fossil fuels in transport, heating, and heavy industry.

Political Debate Over Net Zero

The announcement comes amid political tensions over the UK’s climate policies. Conservative leader Kemi Badenoch recently called the UK’s 2050 Net Zero goal “impossible,” sparking debate over the feasibility of green energy targets.

Despite differing views, this funding signals strong government backing for clean energy, aiming to secure long-term affordability, energy independence, and environmental sustainability.

How You Can Benefit from Energy Support

As the UK invests in clean energy, households can also benefit from free support to lower energy bills and improve home efficiency. You could qualify for grants to help with insulation, renewable heating, or solar energy.

Call Energy Advice Helpline for free on 0800 802 1869
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