The government has launched a new scheme to help oil and gas workers transition into the clean energy industry, with offshore wind developers required to invest in industrial communities in exchange for financial support.
The Clean Industry Bonus will provide backing for companies that prioritise job creation in traditional fossil fuel regions, helping workers in engineering, electrical and welding roles move into offshore wind.
The scheme comes with significant financial backing, with developers receiving £27 million per gigawatt of offshore wind projects.
If firms commit to delivering 7-8GW of offshore wind, up to £200 million of funding could be made available.
The aim is to ensure the shift to renewable energy secures highly skilled jobs in areas that have historically relied on oil and gas.
The scheme will also support developers who commit to building low-carbon factories, offshore wind blades, cables and ports, reducing emissions across the supply chain while tackling supply shortages that have been worsened by Russia’s invasion of Ukraine.
The Clean Energy Bonus scheme is a baby step in the right direction but the funding on offer so far is nowhere near enough to transform offshore wind manufacturing in the UK.
“If the government is going to get anywhere close to its targets on domestic wind manufacture and green jobs it will need to come up with much more ambitious levels of investment and make sure that it delivers.”
Sharon Graham, Unite Gneral Secretary
By favouring companies that use less polluting suppliers, the government says the initiative will help cut industrial emissions while driving down costs in renewables manufacturing.
With the UK producing more offshore wind power than any other European country, ministers see the sector as the backbone of Britain’s transition to a clean power system by 2030.
The bonus will help accelerate this shift, supporting infrastructure that reduces dependence on volatile fossil fuel markets and keeps bills lower in the long run.
Dan McGrail, CEO of RenewableUK, said: “The offshore wind industry already employs over 34,000 people in the UK but there’s an opportunity to treble this number by the end of the decade if we grow the sector’s supply chain.
“Government initiatives like the Clean Industry Bonus, coupled with industry initiatives to support innovation and the upcoming Industrial Strategy, could drive hundreds of millions of pounds of private investment into new manufacturing.”
The funding will be allocated competitively, with successful applicants announced by the Energy Secretary in the summer.
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