Ground-breaking projects driving energy and material security are being backed by up to £20 million by the UK Government to boost regional growth and jobs and unleash benefits across Wales and the UK.
Science and Technology Secretary Liz Kendall has today confirmed that South West Wales is among six further regions across England and Wales to receive funding through the competition for the UK Government’s £500 million Local Innovation Partnerships Fund.
The Fund, operated by UK Research and Innovation (UKRI), supports partnerships between local government, businesses and research organisations to harness local innovation strengths to develop practical solutions that create jobs and improve people’s lives.
Funding will support two connected clusters: Energy Security, helping scale offshore wind, hydrogen and cleaner industrial energy using the region’s ports and infrastructure; and Materials Security, developing new ways to recover, recycle and process critical materials so UK manufacturers rely less on imports.
Together, these clusters will support near‑market projects and business growth – boosting productivity, resilience and progress towards net zero. It also offers new opportunities for local jobs, supporting existing plans for Wales to benefit from up to 20,000 clean energy jobs by 2030.
Local partners will now work with UK Research and Innovation (UKRI) to design projects which target this investment, building on existing local strengths. It will help to fast‑track ideas from prototype to market, back collaborative R&D, attract expert talent, and open up clear routes to investment and new markets.
UK Science and Technology Secretary Liz Kendall said:
“It is a tribute to the pioneering spirit in every corner of our country that we are backing nations and regions across the UK to advance innovation in everything from defence to AI and clean energy to space tech.
“In South West Wales, the funding will advance work on energy and material security, supporting high‑value jobs and long‑term economic growth.
“By working with local leaders, researchers, and businesses, we can unleash transformational research and products that improve lives.”
Secretary of State for Wales Jo Stevens said:
“This UK Government funding is vital to boost jobs and investment in two leading sectors in South West Wales.
“This is just one of a range of steps we are taking to build an economy for Wales that is fit for the future, creating well-paid and skilled jobs that put money into people’s pockets and provide employment for decades to come.”
The £500 million Local Innovation Partnerships Fund forms part of the government’s record £86 billion R&D settlement until 2030. 10 regions were earmarked for a share of funding last year from across the 4 nations.
The approach builds on the successful Innovation Accelerators programme, which has already brought in around £240 million of private investment and created hundreds of jobs. This includes Glasgow researchers working to spot signs of colon cancer earlier to save lives, Greater Manchester teams helping detect heart and lung diseases more quickly and cheaply, while West Midlands innovators worked on AI software to combat travel disruption.
Professor Sir Ian Chapman, Chief Executive of UK Research and Innovation (UKRI), said:
“South West Wales has long been home to world‑class ingenuity and a proud tradition of delivering real impact from great ideas. UKRI is delighted to work with the South West Wales Local Innovation Partnership as they accelerate bold plans to build on that legacy and drive the region’s next wave of innovation‑led growth.
“By bringing together the region’s researchers, entrepreneurs and civic leaders, we are strengthening South West Wales’ distinctive capabilities and championing its ambition on the national stage. This major investment will unlock new opportunities, boost productivity and create the high‑skilled jobs of the future. We’re excited at the prospect of achieving that together.”
This funding forms part of the record £86 billion R&D settlement until 2030 and represents a key pillar of the government’s modern Industrial Strategy, supporting high-growth sectors in every region. For areas ready to unlock their innovation potential, this competition offers a transformative opportunity to secure the partnerships and investment needed to drive growth and improve lives across the country.
