The UK Government has announced plans to set up a sovereign wealth fund with future revenues from the extraction of shale gas.

The Department of Energy and Climate Change said that the fund, which will be put in place when commercial production begins, will ensure profits from national gas last for generations and benefit the whole country.

Energy Secretary Ed Davey said:

“The sovereign wealth fund is a great opportunity for the whole of the UK – everyone will reap benefits from it and I’m pleased to announce my Department will be establishing it when commercial production begins. It’s about storing the financial benefits of shale production and putting it towards a low-carbon energy future.

“It’s part of this Government’s broader strategy to strengthen our security of supply in a cost-effective way for future generations.”

The announcement is supported by Her Majesty’s Treasury (HMT). DECC said further details about the fund will be made available in due course.