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Energy projects dominate infrastructure guarantee longlist

More than half the projects deemed eligible for government infrastructure guarantees are energy projects, the Treasury revealed on Tuesday.

Forty projects, worth £33 billion, are now at the prequalification stage for the UK Guarantee programme. The government is prepared to underwrite borrowing of up to £40 billion.

These include Helius Energy’s 100MW biomass plant at Avonmouth, Islandmagee gas storage in Northern Ireland and two Intergen gas-fired power stations in Lincolnshire and Essex. EDF Energy’s Hinkley Point C new nuclear plant had already been named as eligible. 

Among non-energy projects, a campus redevelopment for the University of Roehamptonand a 3,000-home development in Aberdeen join the Northern Line extension.

Drax remains the only company to have been awarded a guarantee, worth £75 million, for its biomass conversion.

Danny Alexander, chief secretary to the Treasury, said: “Getting our infrastructure right means we can be globally competitive, boost growth and create jobs across the UK. What we see today is the extent to which the government is reaching out to help the private sector build Britain’s key infrastructure.

“Having passed the first hurdle these companies know the government is there to help if they need it. I hope today’s announcement will encourage even more businesses to consider how they can take advantage of a guarantee.”