UK and Japan Forge £7.5bn Clean Energy Partnership
The UK government has announced a significant partnership with Japan’s Sumitomo Corporation, aimed at channeling £7.5 billion ($10.2 billion) into offshore wind and hydrogen projects by 2035. This investment is expected to bolster long-term business growth in key sectors, aligning with the UK’s Modern Industrial Strategy and its 10-Year Infrastructure Strategy. The commitment underscores the UK’s position as a leading destination for global investment, as highlighted by a recent Deloitte survey.
Investment Focus on Clean Energy
The partnership emphasizes the UK’s ambition to become a clean energy superpower. Poppy Gustafsson, the UK’s Minister for Investment, expressed enthusiasm about the deal, stating, “The UK is a top investment destination for Japanese businesses. This is yet another major vote of confidence in our economy and shows international backing for our modern Industrial Strategy.” She highlighted that such investments not only create high-value jobs but also stimulate further investment in the UK’s leading industries, ultimately contributing to economic growth nationwide.
Sumitomo Corporation’s CEO, Hajime Mori, reiterated the company’s commitment to the UK, noting, “We have made active investments in several business sectors in the UK, including decarbonisation and clean energy.” He emphasized that clean energy is a priority sector under the UK’s new industrial strategy, and this agreement will help leverage their strengths to foster growth in this vital area.
This collaboration builds on the existing strong trade and investment relationship between the UK and Japan, enhancing initiatives like the Industrial Strategy Partnership and the Economic 2+2 framework established earlier this year. The ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is also expected to provide a long-term economic boost of approximately £2 billion annually. Currently, trade between the UK and the Asia Pacific region exceeds £135 billion, showcasing the robust economic ties that continue to strengthen through new partnerships.
