Britain’s National Wealth Fund (NWF) has unveiled a focused five-year strategy aiming to deploy £4–5 billion annually in projects spanning carbon capture, energy storage, battery manufacturing, and critical infrastructure.
The plan seeks to generate or support up to 200,000 jobs while strengthening the country’s domestic supply chains.
Set up in 2024 under Prime Minister Keir Starmer’s Labour government, the NWF is tasked with accelerating the UK’s net zero transition and supporting economic recovery amid stagnant growth and political pressures. Operating independently from the government but fully owned by it, the fund has approximately £28 billion in capital, with roughly 30% already committed across 70 projects, including the Sizewell C nuclear plant and a £600 million grid upgrade loan to ScottishPower.
CEO Oliver Holbourn emphasized a more targeted approach to investment in ten priority sectors. In addition to carbon capture, batteries, and grid modernization, the fund will focus on ports, green steel, defense, advanced materials, and critical minerals. Holbourn noted that these investments are designed to improve Britain’s self-sufficiency and reduce reliance on imports in key industrial areas, while leveraging private capital through co-investment structures.
The strategy also highlights the NWF’s role in supporting decarbonization across energy-intensive sectors. With global demand for energy storage and low-carbon technologies rising, large-scale deployment of batteries and grid enhancements are seen as essential to integrate intermittent renewable generation and improve energy security. Carbon capture projects will target industrial clusters, while green steel initiatives aim to cut emissions in high-output manufacturing.
The fund’s deployment targets are ambitious given the broader economic context. Despite extensive government backing, Britain’s economy has struggled to regain momentum, and the Labour government faces political scrutiny over its ability to deliver growth. The NWF’s investments will therefore be closely monitored for both financial and environmental impact, with Holbourn stressing that returns will remain internal and not publicly disclosed.
