State-owned energy projects will be built on royal land under new plans by the Government to ramp up the construction of wind farms, hydrogen production plants and ports.
Sir Keir Starmer and Ed Miliband will set out details of how a state-owned firm called Great British Energy will seek to make the UK less dependent on other countries for its power.
They will announce a tie-up between the new company and the Crown Estate which will see energy infrastructure built on land traditionally owned by the Royal Family.
Most profits from the Crown Estate go to the Treasury, but a proportion goes directly to the King – meaning he could get a higher income if the proposed projects are successful.
The joint venture is intended to lead to the construction of offshore and floating wind farms, tidal energy, hydrogen production and carbon capture facilities. It will also invest in ports and supply chains which are meant to make it easier for private companies to set up projects of their own.
Great British Energy will use £8.3bn of taxpayers’ money, funded by Treasury borrowing, to build and buy new infrastructure. Ministers claim the company will encourage the private sector to invest significantly more.
Sir Keir said ahead of making a speech on energy in North-West England on Thursday: “My Government is laser focused on delivering change, to make people better off. This innovative partnership between Great British Energy and the Crown Estate is an important step toward our mission for clean energy by 2030, and bringing down energy bills for good.
“This agreement will drive up to £60bn in investment into the sector, turbocharging our country toward energy security, the next generation of skilled jobs, and lowering bills for families and business. My mission led government is rolling up our sleeves to deliver for Britain.”
This week it emerged that the royal family would receive a £45m windfall due to rising profits from the Crown Estate, largely driven by the construction of multiple offshore wind farms. The King had previously agreed to cut the size of the payout that he receives from the Crown Estate.
Mr Miliband, the Energy Secretary, said in a document outlining the purpose of Great British Energy: “We already have public ownership of energy in this country, by foreign governments. The policy of this Government is that it is time for the British people to also own things again and build things again.”
But his Conservative counterpart Claire Coutinho replied: “The public has been sold a lie that a Labour government will cut their energy bills by £300. Now that they’ve won the election they’ve tried to brush that figure under the carpet, showing us the truth that GB Energy is nothing but a gimmick that will end up costing families, not cutting bills.
“Labour have already been forced to admit that their flagship energy company won’t generate any energy, and now we know it’s a financial black hole – funnelling taxpayers’ money into reducing risk for multi-million-pound energy companies.”
The Crown Estate owns the vast majority of Britain’s seabed, stretching up to 12 nautical miles from the mainland, and leases parts of it to wind farm operators.
It estimates the partnership will lead to up to 20-30 gigawatts of new offshore wind developments being leased by 2030, enough to power almost 20 million homes.
The Government said GB Energy will help develop future offshore wind projects, as part of its push to hasten the UK’s transition to renewable energy.
Crown Estate chief executive Dan Labbad said: “The Crown Estate exists to serve the national interest, including stewarding our natural resources to deliver a decarbonised, energy secure and sustainable future.
“With new powers and by partnering with government, we can drive greater investment into this future for our country, and with it support nature recovery and job creation.”