The UK government has asked fund managers to bid to run a new clean tech venture capital fund, christened the Clean Growth Fund.
As part of Green GB Week, the government invited proposals from fund managers interested in raising and managing the fund. In its announcement on Wednesday, the UK government said that innovation, new products, processes and systems are key to reducing the cost of clean technologies.
The fund will combine £20 million of government funds with a minimum of £20 million in private funding, with the strategy designed to stimulate growth in the UK clean tech market.
In the RFP document which outlined the requirements for the fund, the government specified that a five year investment period is proposed, with the fund expected to make 20 investments. Later-stage positions are permitted to offset higher risk earlier stage investments.
Later stage investments are to include companies with revenues of more than £1 million. The fund will need to invest into at least five of the following areas:
– Renewable Electricity Generation,
– Renewable Heat Generation,
– Renewable Combined Heat & Power,
– Innovative Energy Networks,
– Energy Storage,
– Low Emission Vehicles & Charging,
– Greenhouse Gas Emission Reduction,
– Domestic Energy Emission Reduction,
– Sustainable Bioenergy Technologies,
– Alternative Fuels
Launching the fund, Claire Perry, Energy & Clean Growth Minister, said the move to decarbonise the economy presented businesses with a “multi trillion pound” opportunity.
“For decades the UK has been recognised as a leading financial centre and today we’re primed to enhance our already world-leading green finance sector, making sure the bulk of this investment flows through the city of London,” she said.
“We’re spending £20 million to help to create a new investment fund that will provide a shot in the arm for growing UK clean technology start-ups and create new standards to streamline the business environment for green finance in the UK.”
A full copy of the RFP is available here.