The UK Infrastructure Bank has confirmed it will invest £107 million in the South Bank Quay development at Teesworks in Teesside, supporting 800 direct jobs.
This is the first investment for the bank, which launched in June 2021 to finance innovative infrastructure projects, tackle climate change and boost growth across the United Kingdom.
The £107 million loan at South Bank will 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 UK Infrastructure Bank has an initial £12 billion of capital to deploy as well as £10 billion of government guarantees.
The bank is engaging with all UK Combined Authorities, the UK’s Devolved Administrations and a large number of local bodies and expects to make investments across theUK.
“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,” said the bank.
“The UK Infrastructure Bank deal will support around 800 high quality jobs directly, with the potential to unlock thousands of jobs in total across the site. “
South Bank Quay is part of the Teesworks Freeport project, which aims to be the UK’s premier offshore wind hub.
It has already attracted companies such as GE Renewable Energy, which plans to build a multimillion-pound wind turbine blade manufacturing factory on the site.
The quay will play a critical role in the loading out and shipping of these blades to the Dogger Bank wind farm, 80 miles off the coast.
UK Chancellor Rishi Sunak welcomed the UKIB’s first deal saying: “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.
“This is a vote of confidence in the Tees Valley economy and our new freeports that will help turbocharge Britain’s post-Brexit growth.”
UK Infrastructure Bank CEO John Flint said: “I’m very pleased to announce our first transaction, only four months since our launch and one that fits with our objectives so clearly.
“South Bank Quay will not only boost economic activity in the region but is a significant investment in the country’s future green technologies.
“We are looking forward to working with the team and encourage other local and regional bodies to get in touch with us on how we can work together to finance projects across the country.”
Tees Valley Mayor Ben Houchen said: “This investment will make the first part of the South Bank quay a reality, which will support GE Renewable Energy’s facility on our site and the thousands of construction and long-term jobs it will create as we drive forward these cleaner, healthier and safer industries.
“It’s also another string to our bow for other businesses looking to locate at the 4.5 million sq ft of advanced manufacturing space just next door, which will make us central to the UK’s offshore sector.
“That this is the bank’s first ever investment is yet another vote of confidence in our region, our innovation and our ability to lead the green and clean technologies of the future.”