UK Government supports new nuclear with £100m

THE UK Government has invested £100m (US$135m) in the proposed Sizewell C nuclear power plant, with the aim to attract investors.

The £100m has been provided to support the continued development of the Sizewell C project in Suffolk. The aim is to attract financing from private investors and it will be invested by developer EDF to help bring the project to maturity.

According to The Financial Times the funding will work as a convertible loan, which would trigger when a final investment decision is made on Sizewell C. At that stage, the Government would either take a stake in the project or have the money repaid. If the project doesn’t reach a final investment decision, the Government would take control of the site and the subsidiary set up to build the facility.

Business and Energy Secretary, Kwasi Kwarteng, said: “In light of high global gas prices, we need to ensure Britain’s future energy supply is bolstered by reliable, affordable, low carbon power that is generated in this country. New nuclear is not only an important part of our plans to ensure greater energy independence, but to create high-quality jobs and drive economic growth.

“The funding announced today will further support the development of Sizewell C during this important phase of negotiations as we seek to maximise investor confidence in this nationally significant project.”

Simone Rossi, CEO of EDF Energy, said: “Sizewell C will benefit from being a near replica of Hinkley Point C in Somerset which is more than 5 years into construction and making great progress in the challenging context of the Covid pandemic. Sizewell C will provide a huge economic boost to East Suffolk where it already enjoys the support of most local people. It will also bring new opportunities for thousands of nuclear supply chain companies up and down the country.”