Viable pathways for heavy industry’s transition through industrial clusters3 Different industrial clusters demonstrate how shared infrastructure, government coordination and innovative financing can accelerate heavy industry’s transition. In the transition of heavy industry, regulation shapes demand – and the cost premium of low-carbon solutions means collaboration models vary by regulatory framework. This chapter focuses on the three financing archetypes observed in practice: government-enabled financing, public capital-led financing and single developer-led financing. Drawing on international cluster experience, it highlights how shared infrastructure, government coordination and innovative financing can accelerate the transition for heavy industry across these archetypes. Within this broader set of examples, the report develops detailed financing “blueprints” for select clusters where project maturity and public information are sufficient to credibly illustrate capital structures and risk allocation in practice.These clusters rely on tailored mixes of private capital, public support and risk-sharing mechanisms. By concentrating demand from multiple emitters and potential users of clean energy, while leveraging strong public-private partnerships, these clusters feature projects that have either reached, or are close to reaching, FID. While valuable lessons can be drawn from these examples, it is important to recognize that there is no one-size-fits-all solution: each cluster’s financing strategy is shaped by its local context, regulatory environment, stakeholder dynamics and project requirements. Furthermore, as the blueprints are based solely on publicly available information, they should be regarded as indicative rather than exhaustive. Additional context and detail for each of the profiled clusters can be found in the Appendix. The following case studies illustrate cluster formation in contexts with relatively strong regulatory certainty. In the UK, long-term policy direction, targeted support schemes and clear roles for the public sector give developers and lenders enough confidence to combine balance-sheet investment with commercial debt. The following section focuses on two UK clusters, HyNet North West and Humber, which illustrate how government-enabled models can translate policy ambition into financeable cluster projects.3.1 Government-enabled financing From Blueprint to Reality: A Stronger Business Case for Shared Energy Infrastructure 18

From Blueprint to Reality 2026