This week, the UK Government’s National Wealth Fund confirmed its first investment will be in Peak Cluster Ltd., a carbon capture project aimed at decarbonising cement and lime production.[1] This announcement provides early insight into how the National Wealth Fund will deploy capital.
In this article, Brevia Energy examines four strategic signals from this initial investment and what they mean for energy stakeholders.
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Net Zero Focus
The National Wealth Fund is prioritising industrial decarbonisation, particularly in hard-to-abate sectors. Cement and lime are among the most emissions-intensive processes, with high levels of process CO2 that cannot be mitigated by fuel switching or electrification. Shortly after Labour’s victory in the General Election last year, the National Wealth Taskforce recommended that the National Wealth Fund focuses on supporting industries with higher risks and barriers to commercial development.[2] By investing in CCUS, the National Wealth Fund is delivering on this, prioritising infrastructure critical to net zero.
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Domestic Supply Chain Focus
The National Wealth Fund is supporting domestic supply chains, aiming to reduce the UK’s dependency on imported industrial materials. The Government has presented Peak Cluster not just as a decarbonisation initiative, but as a means of securing domestic production of cement and lime, which are foundational materials for construction and manufacturing. This reflects a broader policy trend towards enhancing industrial and national resilience in key sectors, prioritising projects which support UK-based supply chains.
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Green Jobs and Growth Focus
Closely tied to this domestic focus is a clear emphasis on green job creation. Ministers have framed this National Wealth Fund investment as part of the broader ‘Plan for Change’, and mission to make Britain a ‘Clean Energy Superpower’.[3] This narrative centres around delivering high-quality, forward-looking jobs in clean industries, particularly in communities such as oil and gas. The recently published Industrial Strategy emphasises the creation of well-paid, skilled jobs in local communities, positioning energy as a key enabler within a broader, more holistic approach to economic development.[4] A Clean Energy Workforce Strategy, expected later this year, will likely elevate the employment dimension of energy transition funding even further.[5]
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Regional Focus
The National Wealth Fund is being positioned as a tool to unlock regional growth, especially in traditional industrial areas. Peak Cluster’s location in the North West has been highlighted in Government messaging, emphasising its potential to deliver skilled jobs in the so-called ‘industrial heartlands’ of the UK. This aligns with the Government’s wider efforts to work with devolved powers to identify opportunities that boost regional productivity and deliver local economic benefits.[4] Such measures are particularly important for the Government right now, as it seeks to appeal to voters amid rising support for Reform, which recently took control of Lancashire County Council following the local elections in May.[6]
Conclusion
This initial investment has set the strategic tone for the National Wealth Fund’s role in shaping Britain’s clean energy economy. For energy sector stakeholders, future project support will hinge on alignment with Government ambitions across net zero, domestic resilience, regional impact, and job creation. As the National Wealth Fund scales up towards its £5.8 billion commitment by 2030, those industries and projects that deliver across all four dimensions will likely be best positioned to benefit. [1]
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Notes
[1] UK Government, Chancellor’s National Wealth Fund investment in major carbon capture project to boost 3,500 jobs, 7 July 2025, Link.
[2] Green Finance Institute, National Wealth Fund Taskforce, July 2024, Link.
[3] UK Government, Making Britain a Clean Energy Superpower, July 2024, Link.
[4] UK Government, The UK’s Modern Industrial Strategy, 23 June 2025, Link.
[5] Hansard, Debate: Clean Power Industries: Jobs, 10 June 2025, Link.
[6] BBC News, Reform UK announce new leader of county council, 12 May 2025, Link.
