Offshore wind supply chain boosted by more funding for UK manufacturing

Introduced in late 2024, the aim of the Clean Industry Bonus is to provide additional revenue support to companies bidding for offshore wind contracts, if they commit to manufacturing in the UK, providing financial support for offshore wind developers, on the condition they prioritise their investment in areas that need it most. The aim is to support the UK’s supply chain, providing jobs in areas that traditionally have been home to the energy industry and thermal power generation.

At the time the Clean Industry Bonus was first announced, it was indicated the budget could be in the order of £200M (US$265M). The application window for the Clean Industry Bonus opened in February 2025.

However, on 7 May 2025, in a budget notice, Secretary of State for Energy Security and Net Zero Ed Miliband indicated that in the seventh Contracts for Difference Allocation Round (AR7), the budget applicable to the Clean Industry Bonus will be set at £20.1M per GW of capacity applying for a Clean Industry Bonus, which amounts to a total budget of in excess of £544M. This also suggests 27 GW of projects have signalled their desire to enter AR7.

The Secretary of State said a portion of the budget is ring-fenced for floating offshore wind proposals, as set out in the Clean Industry Bonus Allocation Framework. This is referred to as a ‘sub-budget.’ The sub-budget is applied on a monetary budget basis, to support and encourage the development of the more expensive nascent floating offshore wind supply chain. The value of the sub-budget is not disclosed publicly to preserve competition.

At the time the Clean Industry Bonus was first announced, the government said it would “create the conditions for cleaner energy industries to thrive in the UK and elsewhere, while rewarding firms for investing in less polluting suppliers… and help to crowd in private investment in communities in Scotland, Wales, the northeast and northwest to build more sustainable offshore wind blades, cables and ports – reducing industrial emissions and helping support the rollout of clean, secure, cheap power.”