The Government is launching a new effort to support green start-up companies across the UK by joint-funding a £40 million venture capital fund to boost the development of next generation clean, low-carbon technologies.
The Clean Growth Fund will contribute towards the UK’s plans to reach Net Zero by 2050 and will be accessible to UK-based companies driving green technology across the power, transport, waste, and building energy efficiency sectors.
Examples of potential projects the Fund could support include:
- Energy storage and smart grid systems to bolster resilience in the power system.
- Renewable heating and ventilation technologies across homes and commercial buildings.
- Bio-fuels and bio-energy systems.
- With £20 million of government investment matched pound for pound by one of the UK’s largest fund managers, it is anticipated the programme could reach £100 million by autumn 2021 through private sector fundraising.
The Fund is seeking to make investments at early stage, seed or Series A rounds in innovative clean growth, low carbon start-ups. It will invest in businesses with a prototype product or service demonstrating a clear contribution to reducing greenhouse gases, together with compelling evidence of market demand.
The Fund is now seeking wider private sector investment and will aim to balance its portfolio across clean growth sectors. Investment parameters for the Fund focus on clean growth technologies, hardware, products and services in sectors including power generation, waste, energy networks, buildings management, industries, bioenergy and alternative fuels.
Business Secretary, Alok Sharma, said:
- "The need for innovative and ambitious ideas across green industries has never been greater. I am pleased that with the help of this fund, promising clean growth start-ups will be able to step up to accelerate the UK’s recovery, while supporting our path to Net Zero by 2050.
- This pioneering new fund will enable innovative low-carbon solutions to be scaled up at speed, helping to drive a green and resilient economic recovery."