Four organisations intending to bring benefit to Wales are set to receive funding through the initial round of The Crown Estate’s innovative Supply Chain Accelerator (“the Accelerator”).
In total, 13 organisations across England, Wales and Scotland are set to share nearly £5m in match funding through the Accelerator.
This funding will help kick-start projects drawing down from a £50m fund established in May to accelerate and de-risk the early-stage development of UK supply chain projects that service the offshore wind sector.
The Crown Estate’s match funding will contribute to a combined development investment of over £9m which, if the opportunities successfully conclude their respective development stages, could lead to more than £400m of capital investment.
Welsh projects receiving funding include those enabling floating wind platforms, operations and maintenance facilities, and those supporting the skills transition.
Earlier this year, The Crown Estate published the Celtic Sea Blueprint which predicted that 5,300 jobs and a £1.4bn economic boost could be generated through deploying the first floating offshore wind capacity, resulting from the current Leasing Round 5 process, in the waters off South Wales and South-West England.
The research highlighted a number of opportunities for supply chain development essential for the deployment of these floating wind farms, including: floating platform components; dynamic cables and connections; wet storage infrastructure and facilities; operations and management infrastructure and facilities; and skills transition facilities.
Successful projects were rigorously evaluated and selected based on a number of criteria, one of which was their ability to deliver on the requirements of the Celtic Sea Blueprint.
This was the initial round of funding allocated by The Crown Estate to address some of these opportunities with a further £45m earmarked for future rounds that could potentially be deployed to support further projects around the UK that meet the opportunities identified by the Industrial Growth Plan (IGP) for the offshore wind sector.
The Crown Estate’s role is to create long-term value for the country, and it focuses on using the land and seabed it manages to help catalyse net zero, restore nature, create thriving communities and drive economic growth. Helping to develop the offshore wind industry’s domestic supply chain through collaboration with industry and government partners forms a vital component of these ambitions.
The UK is already a global leader in offshore wind, and the pipeline grew by 10GW in 2023 to 93GW, with the sector producing 49TWh of electricity last year, according to The Crown Estate’s most recent UK Offshore Wind Report.
This announcement comes as the UK Government continues to set out details of Great British Energy, including a new partnership with The Crown Estate to support the accelerated delivery of clean energy infrastructure, benefiting millions of homes and businesses across the country.
Ben Brinded, Head of Investment at The Crown Estate, said:
“This is a significant moment for The Crown Estate as our first funding into the UK’s offshore wind supply chain, and I would like to congratulate the 13 organisations on their success.
“As outlined by the Government’s emerging Industrial Strategy, in order for the UK to realise the economic benefits from the clean energy sector – and from offshore wind in particular – it is vital that there are mature, investable propositions which crowd in investments from both public and private capital.
“The Supply Chain Accelerator forms part of an active dialogue that we’re having with the Offshore Wind sector and with key stakeholders such as Great British Energy and others to identify and explore opportunities for TCE to make commercial and sustainable investments into the UK offshore wind supply chain.”
Welsh Secretary Jo Stevens said:
“This funding is an important boost as we build the local jobs and skills in south Wales needed to seize the golden opportunity of floating offshore wind.
“This cutting-edge technology can deliver cheaper energy bills but also create the jobs of the future.
“Local businesses, skills and jobs are a critical part of our work with The Crown Estate to achieve clean power but also drive economic growth. The Crown Estate Bill, currently before Parliament, will create a dedicated Commissioner role bringing Welsh expertise to key decisions to help us deliver these aims in the future.”
Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:
“We have set an ambitious goal of producing enough renewable energy in Wales to meet our own needs by 2035, so we welcome this funding announcement for four Welsh projects which are pioneering sustainable schemes.
“It will provide a firm ground to develop robust supply chains in Wales that support the delivery of further renewable energy and floating offshore wind initiatives.”
