First deal for new UK Infrastructure Bank as it pumps £107m into green energy hub
The brand new UK Infrastructure Bank said this morning it plans to invest £107m in the South Bank Quay development at Teesworks, a green energy hub in Teesside, North-East England, creating around 800 jobs.
The deal marks the first investment for the bank, which launched in June of this year to finance innovative infrastructure projects, tackle climate change and boost growth across the UK.
The £107m loan at South Bank should transform part of the former Redcar Steelworks site along the River Tees, creating a 450-metre quay to service the offshore wind sector, providing opportunities for manufacturing, storage and mobilisation of wind technology, the company said in a statement/.
“The project will significantly boost the UK’s capability in this sector, supporting the Government’s target to be a world leader for offshore wind by 2035 and the UK’s plan to reach net-zero carbon emissions by 2050,” the company added.
South Bank Quay is part of the Teesworks Freeport project, which aims to become a major offshore wind hub. GE Renewable Energy plans to build a wind turbine blade manufacturing factory on the site.
Rishi Sunak response
Chancellor Rishi Sunak welcomed the UKIB’s first deal.
“It’s great to see the UK Infrastructure Bank is already doing deals and helping deliver on our pledge to level up and reach Net Zero,” Sunak said this morning.
“This is a vote of confidence in the Tees Valley economy and our new freeports that will help turbocharge Britain’s post-Brexit growth.”
The UK Infrastructure Bank opened for business in June and has an initial £12bn of capital to deploy as well as £10bn of Government guarantees.