UK Launches New Financing to Spur Offshore Wind Component Manufacturing
UK’s Offshore Wind Growth Partnership (OWGP) has launched a new Manufacturing Facility Support Programme (MFSP), as the country targets to boost domestic wind manufacturing capacity. The UK has identified offshore wind manufacturing and innovation as a key factor in national development. In this regard, the UK wants to capture a bigger share of the global offshore wind supply chain.
The new MSFP will have available $2.6 million in funding for UK businesses looking to either build new manufacturing facilities or expand existing ones. This includes facilities that make key components, equipment, and systems required for the offshore wind sector. The stage one application window is open until September 20.
The effort comes as the UK is driving ahead with its efforts to accelerate wind energy generation. As a country, it just passed the 30 GW installed capacity mark with half onshore and the other half offshore. The UK has the largest installed base in Europe but ceded overall leadership to China. Last week, the UK government however awarded a massive new tranche of renewable energy projects including 5.3 GW of new offshore wind and 990 MW of new onshore wind for a total of 131 contracts awarded will add 9.6 GW of renewable energy.
The MSFP aims to catalyze early-stage investment in offshore wind manufacturing. In addition, matched funding of up to $650,000 will be provided via a two-stage application process, which will help to accelerate and de-risk the early-stage (pre-investment) development activities.
The funding is primarily available for facilities that focus on areas in which the UK wants to develop its global technology leadership. These include advanced turbine technology, industrialized foundations and sub-structures, future electrical systems and cables, and next-generation installation and operations and maintenance (O&M). These priority focus areas were identified in a recent Offshore Wind Industrial Growth Plan, commissioned by the Offshore Wind Industry Council (OWIC), RenewableUK, and the Crown Estate. The plan recognizes that the UK outpaces other nations in high-value sectors such as aerospace, pharmaceuticals, automotive, and defense, and thus, offshore wind should be added to this list.
“This new program will provide highly-focused support to innovative UK-based manufacturing companies, geared towards providing locally-produced equipment and systems. Developing these resources is key to helping accelerate the deployment of offshore wind in the UK, helping us reach our ambitious target of 60GW by 2030,” said Iain Sinclair, Non-Executive Director for OWGP.
MFSP will be awarded on a competitive basis in the form of a grant. Successful proposals will demonstrate a long-term business plan that covers investment plans, forecast market share, revenue, profitability, employment, and exports.