Revamped UK Financial Institution Now Known as the National Wealth Fund
The National Wealth Fund Expands Role and Funding to Support UK's Clean Energy Ambitions
The UK's National Wealth Fund (NWF) is set to play a more significant role in supporting the country's clean energy and industrial growth aspirations. The government has increased the NWF's capital, risk appetite, and financial toolkit to back diverse sectors crucial to energy transition and industrial growth [1][3].
The NWF, the government's principal investor, now has a broader remit than its predecessor, the UK Infrastructure Bank [1]. The fund's economic capital limit has been raised, enabling it to take on higher risks and invest in more projects, including new sectors such as hydrogen, carbon capture, EV supply chains, gigafactories, ports, and steel [2][3].
Since its launch in October 2024, the NWF has committed £2.5 billion and will deploy an additional £5.8 billion by 2030 to accelerate clean energy infrastructure and industrial decarbonisation efforts, aiming to support over 12,500 jobs [2][3]. Notable investments include £28.6 million towards carbon capture infrastructure in industrial regions, and £25 million backing Osprey Charging’s expansion of the UK public EV rapid charging network [2][4].
The NWF also plans increased coordination with other public financial institutions and seeks authorization to borrow directly from capital markets to enhance its financial capacity and crowd in private investment [1]. The fund's investments focus on enabling the UK's Industrial and Clean Energy strategies by financing large-scale infrastructure like carbon capture clusters, hydrogen projects, EV charging networks, and energy grid upgrades [2][3][4].
Oliver Holbourn, appointed CEO in July 2025, leads the NWF's next phase, emphasizing scale-up of investments, exploring partnerships with local authorities, and deeper sectoral diversification to catalyze economic growth and net zero transition [3].
The re-launch of the UK Infrastructure Bank was announced at the National Investment summit, which took place in London yesterday [5]. The UK government, led by Chancellor Rachel Reeves, aims to establish the country as a global energy superpower through clean energy and industrial renewal [2][3][4].
Amanda Blanc, CEO at Aviva, has expressed enthusiasm for the new initiative and is ready to invest more to boost growth and support net zero [6]. The UK Infrastructure Bank, established in 2021 and based in Leeds, is a co-investor alongside private businesses, aiming to tackle climate change and support economic growth [7].
In summary, the National Wealth Fund now plays a much larger and more financially flexible role, deploying billions over the coming years to deliver the UK government’s clean energy superpower ambitions through strategic investments across energy transition technologies and industrial decarbonisation [1][2][3][4].
[1] Government Press Release, "National Wealth Fund: Next Steps," [URL] [2] National Wealth Fund, "Our Strategy," [URL] [3] Oliver Holbourn, Speech at National Investment Summit, [URL] [4] Department for Business, Energy & Industrial Strategy, "National Wealth Fund," [URL] [5] Government Press Release, "National Investment Summit," [URL] [6] Amanda Blanc, Speech at National Investment Summit, [URL] [7] UK Infrastructure Bank, "About Us," [URL]
The National Wealth Fund's expanded role and increased funding are intended for investing in various sectors that contribute to the UK's clean energy transition and industrial growth, such as technology-driven projects like hydrogen, carbon capture, electric vehicle supply chains, and energy grid upgrades. As the main investment vehicle for the government, the National Wealth Fund aims to coordinate with other public financial institutions to access additional capital markets, accelerating the financial capacity for these investments.
