UK Government takes 50% stake, confirms support for Sizewell C: New Nuclear | Daily News Byte

November 29, 2022

The UK will invest 679 million GBP (815 million USD) and become a 50% partner with EDF in the Sizewell C nuclear project. The money “facilitates China General Nuclear’s exit from the project, including buyout costs, all tax obligations and commercial arrangements.”

What Sizewell C could look like (Image: EDF)

The Department for Business, Energy and Industrial Strategy (BEIS) said EDF (owned by the French state) will also provide additional investment to match the UK government’s share and “the government will work with the project company to seek to attract new third-party investment for assistance in financing the construction and operation of the project”. The total cost of the project was estimated at around GBP 20 billion by the then partners in 2020.

The plan is for Sizewell C to have two EPRs producing 3.2 GW of electricity, enough to power the equivalent of about six million homes. It would be a “replica” of the Hinkley Point C factory under construction in Somerset. EDF Energi submitted a development consent order (planning application) for the plant in May 2020, which was approved in July this year. EDF Energi said it expects to make a final investment decision later this year or in 2023.

In January, the UK government provided GBP 100 million for the development of the project, and also passed legislation through parliament that allows for a new way of financing new large infrastructure projects – the Regulated Asset Base (RAB) financing model – and in this case gave itself the option to take 20% share in the project.

BEIS said it would create “10,000 highly skilled jobs and provide reliable, low-carbon electricity to the equivalent of 6 million homes over 50 years”.

Business and Energy Secretary Grant Shapps said the impact of Russia’s war on Ukraine meant “we need more clean, affordable electricity produced within our borders – British energy for British homes.” Today’s historic deal supporting the Government’s development of Sizewell C is critical to this, moving us towards greater energy independence and away from the risks of relying on volatile global energy markets for our supply.

“This is at the heart of a package of measures which – along with a new Great Britain nuclear weapon [government body] and the powers of the Energy Security Act – will ensure a secure supply for now and for generations to come.”

British Chancellor Jeremy Hunt said the investment “represents the biggest step on our road to energy independence – the first government support for a nuclear project in more than 30 years.” When completed, this mega project will power millions of homes with clean, affordable, home-grown energy for decades to come.”

Simone Rossi, CEO of EDF Energi, said: “This is a great vote of confidence in Sizewell C and we are very excited that the government is partnering with us to prepare the project for further investment. Sizewell C will build on the achievements of Hinkley Point C and replicating its design will provide greater certainty in terms of schedule and cost. It will give another major boost to jobs and skills in the nuclear industry and provide huge new opportunities for Suffolk communities. New nuclear will protect Britain from volatile global gas markets and help keep bills under control for the country’s homes and businesses.”

Former Prime Minister Boris Johnson initially announced a £700 million investment in the Sizewell C project before leaving office in September. His short-lived successor as prime minister, Liz Truss, pledged to continue investing in a new nuclear power plant, and now her successor as prime minister, Rishi Sunak, has reaffirmed that.

The money is part of £1.7bn of new direct government funding for the development of a major nuclear project announced in October.

In October 2015, EDF agreed with China General Nuclear (CGN) to develop the Sizewell C project to the point where a final investment decision could be made. EDF had an 80% stake and CGN a 20% stake. CGN planned that becoming a minority shareholder in the project would “lay the foundations for further development of CGN-led projects in the UK”, particularly at Bradwell B. However, the so-called “golden era” of UK-China relations ended in recent years when the UK government cited security concerns as it reviewed and blocked Chinese investment in UK infrastructure. Although CGN has now exited the Sizewell C project, work appears to be on hold in Bradwell B, according to the “About Us” page on the Bradwell project website, CGN still owns 66.5% of the project, with EDF holding the remaining third.

The UK currently has one nuclear power station under construction, at Hinkley Point C in Somerset in south-west England. Construction began in December 2018 for the plant, which consists of two EPR reactors of 1630 MVe each. The start of electricity production from block 1 is expected in June 2026, and block 2 will follow in 2027 with a projected lifespan of 60 years.

The UK’s energy strategy unveiled in April set a target for eight new reactors and small modular reactors to produce 24 GVe of capacity by 2050, meeting around 25% of the UK’s projected electricity demand. The UK currently produces around 15% of its electricity from around 6.5 GW of nuclear capacity.

Researched and written by World Nuclear News