The UK’s newly published Industrial Strategy and Clean Energy Industries Sector Plan mark a pivotal moment for our nation’s economic and environmental future. For those of us working at the intersection of industry, innovation, and sustainability, these documents are more than policy – they are a call to action. And for the Solent region, they represent a generational opportunity to lead the UK’s clean industrial revolution.
A National Strategy with Regional Relevance
The UK Government’s ten-year Industrial Strategy sets out a bold vision: to rewire the economy for sustainable growth, reduce energy costs, and unlock private investment across key sectors – the IS-8. Alongside it, the Clean Energy Industries Sector Plan outlines how clean power – offshore wind, solar, carbon capture, hydrogen, fusion, and more – can become the engine of national renewal.
At its heart is a commitment to double annual investment in clean energy to over £30 billion by 2035, create well-paid jobs, and build the grid infrastructure and workforce needed to deliver a net zero economy. These are not abstract ambitions – they are deeply relevant to the Solent.
Why the Solent Matters
The Solent is one of the UK’s most emissions-intensive industrial regions, with over 5 million tonnes of CO₂ equivalent emitted annually from industrial sources. Our natural geography, infrastructure, and industrial base make us both a challenge and an opportunity in the national decarbonisation effort.
The Solent Cluster was formed to meet this challenge head-on. As a cross-sector collaboration of industry, academia, and local partners, we are uniquely positioned to deliver large-scale decarbonisation through carbon capture and storage (CCS), low-carbon hydrogen, and clean energy innovation. The UK’s new strategy validates this approach – and gives us the policy tailwinds to accelerate.
A National Strategy That Speaks Our Language
The UK Government’s Industrial Strategy sets out a ten-year plan to double investment in clean energy industries to over £30 billion annually by 2035. The accompanying Clean Energy Industries Sector Plan identifies CCUS, hydrogen and Offshore Wind as three of the UK’s “frontier industries” – technologies with the potential to drive exports, create jobs, and anchor sustainable industrial growth.
This is not abstract ambition. The government has committed to:
- By 2035 the ambition of Government is for the UK to have at least doubled investment in frontier Clean Energy Industries to over £30 billion per year.
- £1 billion for the Clean Energy Supply Chain Fund
- Build on the success of the Contracts for Difference (CfD) Clean Industry Bonus (CIB), which allows clean energy developers in fixed and floating offshore wind to access additional CfD revenue for increased investments in manufacturing in our coastal and energy communities and in cleaner, more sustainable supply chains. Interestingly, this may be expanded to hydrogen.
- In further recognition of the important role clean energy industries can plan in regenerating coastal communities, the Clean Industry Bonus for AR7 will reward offshore wind developers who invest in the UK’s poorest communities, or in cleaner manufacturing facilities, with funding reserved for investments in the floating offshore wind supply chain.
- A £27.8 billion National Wealth Fund to support UK-based manufacturing and deployment – with £5.8bn for Ports, which are rightly recognised as foundational industries that will play a key role in the energy transition. For the Solent, this could mean direct investment in CCS infrastructure, hydrogen production, and port upgrades – critical enablers of our decarbonisation roadmap.
- £500 million for regional hydrogen transport and storage networks
- A new Connections Accelerator Service to fast-track grid access
- A strengthened carbon pricing regime aligned with the EU ETS
These measures directly support the kind of infrastructure and investment needed to deliver CCUS and hydrogen at scale in the Solent and to deepen the already strong offshore wind supply chain.
Skills and Workforce
With over 450,000 people already employed in low-carbon roles, the government aims to significantly expand this figure. For the Solent, this aligns perfectly with our ambition to create thousands of skilled jobs – from engineers and technicians to planners and project managers. We must now work with industry, local colleges, universities, and training providers to ensure our workforce is ready.
Policy Certainty and Market Signals
Perhaps most importantly, the strategy provides long-term certainty. Investors and developers need confidence to commit capital to complex, capital-intensive projects. The UK’s commitment to clean energy as a foundation of industrial strength sends a clear message: the future is low carbon, and the government is backing it.
This is particularly important for CCS and hydrogen, where infrastructure requires multi-year planning and coordination. The Solent Cluster’s Local Industrial Decarbonisation Plan (LIDP) Transition Pathways report, published earlier this year, sets out a clear roadmap for how we can deliver this transformation locally – and CCUS and Hydrogen are essential.
CCUS: The Anchor of Industrial Decarbonisation
The Solent’s industrial base includes petrochemical facilities, energy-from-waste plants, and manufacturing sites with limited alternatives for deep decarbonisation. For these emitters, CCUS is the only viable pathway to net zero.
Our LIDP modelling shows that with large-scale storage available by 2030, the Solent could capture and store ~3.3 MtCO₂ per year, rising over time as infrastructure scales. This would not only decarbonise local industry but also position the Solent as a CO₂ import and storage hub for other regions – such as South Wales and the South East – that lack geological storage options.
The UK’s Industrial Strategy recognises this potential. It calls for investment in CO₂ transport and storage infrastructure, streamlined permitting, long-term revenue models to de-risk private investment, and building low-carbon markets. These are precisely the enablers we need to move from feasibility to final investment decision.
Hydrogen: Fuel for the Future
Hydrogen is no longer a future technology – it’s a present-day imperative. The Clean Energy Industries Sector Plan identifies hydrogen as a key pillar of the UK’s clean growth strategy, with export potential of up to £9.8 billion by 2050
The Hynamics Fawley Green Hydrogen project recently shortlisted in HAR2 is more than a decarbonisation initiative – it’s a strategic anchor for a hydrogen-powered Solent. With the right support, it could spark a regional transformation that aligns perfectly with the UK’s clean growth ambitions.
The Solent Cluster’s Role
Our vision is to make the Solent a leading hub for low-carbon industry. The national strategy gives us the tools – but delivery will happen on the ground, through partnerships, projects, and people.
We are already working with major industrial emitters, energy providers, logistics operators, and academic institutions to develop investable projects. Our LIDP identified CCS as the single most effective lever for reducing industrial emissions in the region, with the potential to abate up to 60 million tonnes of CO₂ by 2050.
With the English Channel carbon storage opportunity, there is the potential for the Solent to become a CO₂ import and storage hub, serving other regions with limited geological storage options. This would position us not just as a decarbonisation cluster – but as a national asset in the UK’s net zero journey.
What Comes Next
The publication of the Industrial Strategy and Clean Energy Industries Sector Plan is a milestone – but not the destination. The real work begins now: turning ambition into action, strategy into shovel-ready projects. To do this, we need:
- Policy alignment: Continued coordination between national and local government to streamline planning, permitting, and funding.
- Public Investment: Decarbonisation project have high up-front capital costs that require public investment to de-risk and enable a return on investment for private capital.
- Private sector mobilisation: Businesses must step up with investment, innovation, and collaboration.
- Community engagement: Decarbonisation must deliver benefits for local people- jobs, cleaner air, and economic resilience.
The Solent Cluster stands ready to lead. We have the vision, the partnerships, and now, the national framework to deliver.
Final Thoughts
The UK’s clean energy mission is not just about climate – it’s about competitiveness, security, and prosperity. For the Solent, it’s a once-in-a-generation opportunity to reimagine our industrial base, create good jobs, and lead the world in clean growth.
Let’s build it in Britain. Let’s power the world – from the Solent.