How the Northern Powerhouse Investment Fund II is backing sustainable growth across Yorkshire

Lizzy Upton, Senior Investment Manager at the British Business Bank, explores how the Northern Powerhouse Investment Fund II is supporting sustainable businesses across Yorkshire, helping smaller businesses lead the transition to a net zero economy.

Sustainability remains a central priority for businesses across the UK. With the UK planning to reach net zero by 2050, momentum in this area continues to build. That national focus is reflected at a regional level, with smaller businesses across Yorkshire increasingly embedding environmental considerations into how they operate and grow. This spans everything from small operational improvements to innovative technologies that offer practical solutions to some of the most pressing challenges facing the green economy.

Smaller businesses are critical to the UK’s transformation into a low-carbon economy, but access to the right support and funding opportunities is essential to helping them thrive. For many innovative businesses, traditional funding routes can be difficult to access, especially in harder-to-reach areas across the North. The Northern Powerhouse Investment Fund II (NPIF II) plays a key role in addressing this gap, ensuring that ambitious sustainable businesses across the North are able to secure the capital they need to scale and make an impact.

Yorkshire already has a strong platform for sustainable growth, underpinned by its diverse industrial base, manufacturing heritage and highly skilled workforce. The Government’s recent Industrial Strategy further reinforced the region’s strengths, highlighting key investment zones such as the South Yorkshire green industry zones and the Humber Freeport’s clean energy hubs. With this competitive edge, Yorkshire is well positioned to make a meaningful contribution to the UK’s sustainability goals, and NPIF II is there to support businesses as they progress on this journey.

Investment supporting sustainable growth

This is already an area we’re already seeing strong deal activity in Yorkshire. Leeds-based OceanSaver demonstrates how sustainable consumer brands can scale with the right backing. The eco-friendly cleaning company secured £1.9m from NPIF II – Mercia Equity Finance to support its expansion into new retailers and product ranges. Its plastic-free cleaning products are already stocked by major supermarkets and since launching in 2018 the business has prevented more than 15 million pieces of plastic from entering the environment. OceanSaver plans to use the investment to grow its team in Leeds and work towards becoming the UK’s largest eco-cleaning brand by 2030.

Based in Birstall, West Yorkshire, C80 Solutions is supporting the UK’s residential and commercial sectors with energy assessment, compliance, consultancy and testing services. The business secured a five-figure loan from NPIF II – BEF Smaller Loans to support its next phase of growth, including investment in talent, resources and infrastructure. The funding also supported the launch of a new integrated brand, enevo, bringing its services together under a single multidisciplinary offering.

Along Yorkshire’s coastline, Scarborough-based SeaGrown is tackling environmental challenges through innovative seaweed and shellfish cultivation. The company secured a six-figure loan from NPIF II – Mercia Debt Finance to expand its operations following successful trials with offshore windfarm operators and a government-backed demonstration project. Its technology improves water quality, supports biodiversity and draws down carbon, while also creating diversification opportunities for fishing communities. The business is now working with major offshore operators and plans to grow its workforce as it expands into new commercial markets.

Enabling the transition to a low-carbon economy

These businesses are part of a wider trend across Yorkshire, where sustainability is increasingly driving innovation, productivity and long-term growth. Whether through reducing plastic waste, protecting marine environments or improving agriculture, smaller firms are playing a vital role in supporting the transition to a greener economy.

NPIF II was established to ensure that businesses like these are able to access the finance they need to play an active part in this transition. By offering a range of equity and debt finance through experienced fund managers, the Fund supports businesses at different stages of growth and across a wide range of sectors.

As Yorkshire continues to build on its strengths in green industry, advanced manufacturing and clean energy, access to flexible capital will remain essential. By backing sustainable businesses today, NPIF II is helping to build a more resilient, competitive and environmentally responsible Yorkshire economy for the future.