UK secures £10bn in foreign investment
By Leila Steed19 October 2021
A total of 18 new trade and investment deals, which will contribute around £9.7 billion to the British economy and create 30,000 new jobs, have been announced by the UK Government.
The deals were secured at the Global Investment Summit, which was hosted by the Government and sought to encourage foreign investment to “support green growth” of the country.
With multi-billion-pound investments from a number of international companies - such as Iberdrola, Viridar and Budweiser, “the package of 18 deals will support growth in vital sectors such as wind and hydrogen energy, sustainable homes and carbon capture and storage”.
Speaking of the new investments, which were secured ahead of the COP26 climate conference, Prime Minister Boris Johnson said, “The world’s top investors have seen the massive potential in the UK for growth and innovation in the industries of the future.
“The fantastic £9.7 billion of new investment we have secured today will power our economic recovery, creating thousands of jobs and helping to level up across the country.”
Johnson added, “This is just the start. We will see new partnerships for green growth forged at today’s Global Investment Summit, as we look ahead to COP26 and beyond.”
One of the major deals announced was with energy provider Iberdrola, which intends to invest £6 billion in the East Anglia Hub offshore windfarms through its ScottishPower subsidiary.
While subject to planning consent and a Contract for Difference, “Iberdrola’s biggest offshore wind development anywhere in the world” aims to supply green energy to around 2.7 million British homes and is anticipated to create around 7,000 jobs.
Ignacio Galán, Iberdrola’s Chairman, said, “We share the ambition of the Prime Minister’s Ten Point Plan and, following the stable and predictable UK framework, we are committed to playing our part.
“Our £6bn investment in the East Anglia Hub would be a significant step to achieving enough offshore wind to power every UK home by 2030.”
UK Government and Bill Gates launch £400 million partnership
Alongside the investment announcements, the Global Investment Summit also saw the Prime Minister and Microsoft founder Bill Gates launch a £400 million partnership to deliver clean energy technologies through a programme called Catalyst.
Part of the Breakthrough Energy network - a coalition of private investors concerned about climate change that was founded by Bill Gates in 2015 - Breakthrough Energy Catalyst is described as a new model for public-private sector partnerships.
It “brings together businesses, governments, philanthropists and individuals to invest in critical climate technologies” in the areas of green hydrogen, long term energy storage, sustainable aviation fuels and direct air capture.
UK Government has committed £200m to the partnership for the development and deployment of UK projects in these areas. This investment will be matched by investors and businesses partnered with Breakthrough Energy Catalyst, in order to bring the technologies to market.
Bill Gates, Founder of Breakthrough Energy, said, “Our partnership with the United Kingdom will accelerate the deployment of these critical climate solutions, helping to make them more affordable and accessible.
“In order to achieve net-zero emissions, we need to reduce the costs of clean technologies so they can compete with and replace the high-emitting products we use today”.
He added, “Over the next 10 years, Catalyst aims to work with the Government to support the commercialisation of high-impact decarbonisation technologies and help rapidly drive down the cost of green technologies that are too expensive to scale, and take these to global markets.
Other deals secured at the Global Investment Summit:
Eren Paper, owned by Turkish conglomerate Eren Holding, is investing £500m to acquire a mill in Shotton, North Wales, and convert it to produce cardboard manufactured from paper waste. The mill will be powered by biomass fuel and the investment is expected to create around 300 new jobs.
- Peer-to-peer lending firm Zopa have raised £220m, led by Softbank Vision Fund 2, to grow their responsible and sustainable banking and lending services in the UK.
- Getir plan to invest £100m to rapidly expand its sustainable and superfast grocery delivery service across the UK, creating 7,000 permanent jobs in 2022. The business utilises a 100% electric fleet of delivery vehicles.
- Malaysian conglomerate Petra Group will invest £30m in establishing the Petra Modular business in the UK for the production of sustainable modular homes, creating 225 jobs. They will also invest £30m in establishing Petra Group’s ‘Green Rubber’ business in the UK, which will see the development of a production facility creating 110 jobs.
- HiPoint AG will invest £50m to create five new facilities for the recovery and processing of horse stall waste into reusable bedding, fertilizer & bio-fuels, creating 90 jobs across the UK.
- Ultimate Battery Company will invest £28m setting up a UK production plant for lightweight, eco-friendly batteries, creating 300 jobs.
- Global Marine will invest £10m in building hybrid engine crew transfer vessels and surface effect ships to service offshore wind infrastructure, creating 10 jobs in the East of England.
- HyPoint will invest £6.6m establishing a HQ in the South East for the development of their next generation hydrogen fuel cell system, creating 10 jobs.
- Crowdz will invest £5m to develop and launch an environmental, social and governance platform based on blockchain technology, creating 7 jobs in London.
- Treedom will establish a UK office in London for their online platform for planting trees, creating 10 jobs.
- Tes Amm is creating 15 new jobs in Scotland, doubling its electronic waste recycling solutions for lithium-ion batteries from electric vehicles, consumer electronics and IT & mobile technologies.
- Jacobs will create over 150 jobs as they grow their high-tech Birchwood laboratory in Warrington, where they carry out research and development, testing and cyber security operations that support critical UK national infrastructure.
- Huaneng will invest in the 50MW Battery Storage project in StoneHill. This greenfield project is a major new milestone for energy storage in the UK and will employ local partners in construction and operations.
- Sumitomo Corporation are launching Presidio Ventures Europe, a venture arm of Sumitomo, focused on energy and mobility.